Energy News
More ‘Transparency’ Coming For Energy Customers After AEMC ‘Final Rule’
Customers will soon see more prominent messages for better deals in the market.
Important Points
-
From December 2026, energy bills will have clearer, more visible “better offer” messages.
-
The rule looks to help Australians see when they could save money by switching energy plans.
-
Many customers miss out on cheaper deals simply because they don’t open or fully read their bills.
-
Retailers will now be required to include better offer messages in emails and bill summaries, not just the bill itself.
Your energy bill could look a little different in 2027. On 11 September 2025, the Australian Energy Market Commision (AEMC) made a final retail rule to improve electricity customers’ ability to switch to a better energy offer. The idea is to help households more easily see where they might save money.
What the New Rule Means
Under the Australian Energy Regulator’s (AER) Better Bills Guideline, energy bills must include a “better offer message.” This message alerts customers when a cheaper plan exists, explains how to switch, and often encourages them to compare options across retailers.
Currently, many bills include a “better offer message” somewhere – which typically alerts customers of potential savings by switching to a different plan. However, the AEMC found that many electricity customers don’t even open their envelopes or avoid it altogether.
The final rule mandates that energy bills must make this more prominent and visible for energy consumers.
AEMC Chair Anna Collyer explained that making energy bills clearer is about giving people the information they need, right when they need it.
“Energy bills can be complex, and many customers are busy – which means large numbers disengage and miss out on better plans,” Ms Collyer said. “This final rule is like putting price tags right on the shopfront. It makes the options clear, upfront, and impossible to miss.”
She added that better visibility helps households and small businesses make smarter financial decisions, while also driving stronger competition across the retail energy market.
This change will come into effect on 30 December 2026.
1Why Don’t Customers Switch?
One theory has been that switching takes too much time and effort. However, the AEMC’s investigation suggests this isn’t the main reason. Once a customer makes the decision to switch, the actual process is usually straightforward.
Instead, the bigger challenge is awareness. Many people never see the “better offer” message because they don’t open their bills. This can happen for a number of reasons: some customers rely on direct debit and skip opening statements, others find energy bills confusing, and some only glance at summary payment amounts and completely disregard the rest.
2Making the Message Harder to Miss
Research from the Behavioural Economics Team of the Australian Government (BETA) shows that customers who do see the better offer message are more likely to switch. That’s why the AEMC’s final rule requires retailers to include this information in more places, not just on bills.
For example, if a customer receives an email summary when a new bill is issued, that summary will now also need to highlight the potential savings from switching. The goal is to put the message directly in front of more people, making it harder to miss and easier to act on.
These new switching rules are part of a broader set of reforms. Combined with the Improving Consumer Confidence in Retail Energy Plans rule, which prevents retailers from increasing prices more than once every 12 months, they help ensure customers stay on good deals for longer.
This also addresses the so-called “loyalty penalty”, where long-term customers often end up paying more than new ones. The reforms aim to make the market fairer, clearer, and more competitive.
Final Thoughts
The AEMC’s final rule is a pivotal step towards more transparency in an industry that’s often too complex for its own good. By making better offers more visible, it gives Australians an opportunity to switch to a more competitive offer and ultimately save in the long run.
If you feel like you’re overpaying on your electricity, give us a call at 1300 232 848. Our team of energy experts will compare the best plans we have available, work to find you a better deal, and take care of the process from start to finish. It’s fast and 100% free. Or, you can enter your postcode below to see some of the best plans available in your area.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
