End-to-end switch duration in now shorter than its ever been
A change to the energy regulations in October 2021 has dramatically shortened the average switching time for Australian energy consumers, by reducing the transfer component of the switch to only 2 days, when it could previously take up to 95 days.
Previously, the standard switching process included waiting for a scheduled meter read to be performed. For those on a manually read accumulation meter, this could mean waiting for as long as 95 days, or 3 months. Smart meters can be read remotely, so this issue does not impact those who are on smart meters.
Since 1st October 2021, new regulations has made it clear that the switch can proceed on basis of an estimated meter read, and the transfer can be completed by the 'winning' retailer in only 2 days, which is a huge win for energy consumers, and is expected to accelerate consumer access to savings, plus virtually eliminate the confusing 'win back' offers that retailers would often make in the interim period while waiting for the switch to be completed.
The end-to end switching timeline should now be less than 3 weeks of elapsed time, comprising these steps:
- Retailers will review your application before they send a Welcome Pack, which is the first step toward switching. This usually takes up to a few days, but there is no fixed time frame to complete this. Many retailers will make a credit check as part of this process.
- Your new retailer will then send you a Welcome Pack confirming the detailed information for the plan you're switching to, and any additional steps that may be required - for example it may be necessary to complete a direct debit arrangement for some plans
- There is then a minimum 10 business day cooling-off period required under the energy regulations, from the time of delivery of the Welcome Pack before your new retailer can initiate the transfer of your meter to them.
- The transfer process has been dramatically shortened to two days, when it could previously take up to 95 days