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15/01/2002

TXU tariff penalises

Pensioners and energy conscious households

The Victorian Council of Social Service put out a warning today, the second day of electricity retail competition in Victoria.

Gavin Dufty, Acting Chief Executive Officer, warned that the majority of pensioner and low consuming households are being directly penalised by the TXU safety net energy charges. This energy charge penalises low consuming households (pensioners and the energy conscious) with high essential electricity charges and rewards high-energy consumption with lower electricity charges.

“TXU has introduced a declining block tariff - such a tariff acts to cross subsidise high energy consumers at the expense of the energy conscious and low energy consumers, such pensioners,” Mr Dufty said.

“The TXU tariff structure gives a 15% discount in energy charges for consumption over 1020 KwH per quarter. This could effectively result in as much as a 10% discount for high consuming households.”

“TXU, the only company to introduce such a tariff, covers regions across Victoria that have among the highest number of pensioners and the highest unemployment levels in the state. VCOSS believes that TXU is acting in a reprehensible manner.”

“Mr Dufty encouraged all TXU customers that are concerned about energy conservation and fair treatment of pensioners to actively seek a more favourable contract with another energy retailer.”

“He also called on the government to develop and enforce clear guidelines for setting safety net tariff, guidelines that don’t contradict the states social and environmental objectives.”

For further details contact Gavin Dufty 9654 5050 or m 0419367073