VDO DMO changes - Overview Changes effective 1 July 2019

NOTE: Slightly difference rules for VIC vs the other states Overview Energy - hot topic for government and consumer agencies. 1 July 2019 > NEW REGULATORY CHANGES Designed to help customers understand the energy offers Create consistency between retailers in terms of offers and product information Energy products are complex Customers are often confused about what value they are getting NOTE: Slightly difference rules for VIC vs the other states Cut copy

What are the changes? REGULATED PRICING CLEAR ADVICE ENTITLEMENT BEST OFFER CALCULATION GST PRICING

REGULATED PRICING REGULATED PRICING Victorian Default Offer Rates set by the government Replaces all current Standing Offers CLEAR ADVICE ENTITLEMENT VIC BEST OFFER CALCULATION Default Market Offer Prescribed usage profiles Used to calculated the Reference Bill - benchmark for all offers NSW QLD SA GST PRICING Create a common point from which all discounts and rates are referenced.

Clear Advice Retailers MUST inform customers, during the sales process: REGULATED PRICING Terms which affect what customers pay eg conditional discounts CLEAR ADVICE ENTITLEMENT Terms which relate to change of benefits. eg expiring benefits BEST OFFER CALCULATION Additional charges in the sales contract. eg 0.6% card payment fee GST PRICING VIC initiative: ensure customers are clear on the terms of their offer.

Best Offer REGULATED PRICING CLEAR ADVICE ENTITLEMENT Retailers have to inform VIC customers on their bill if any of the current Generally Available offers is cheaper for them and what their annual savings might be on that plan This is done 3 months (for electricity) and every 4 months (for gas). Note Low impact – ACN offers always more competitively priced than generally available plan the “best offer” not always most suitable plan eg Solar customers REGULATED PRICING CLEAR ADVICE ENTITLEMENT BEST OFFER CALCULATION GST PRICING VIC initiative: help customers see if their retailer has a better offer (particularly if their benefits have expire)

GST Pricing REGULATED PRICING The Victorian Government has announce that all tariffs, fees and charges must be quoted with GST. While this is a VIC rule only, we (like many other retailers) will be applying this rule across all states. CLEAR ADVICE ENTITLEMENT BEST OFFER CALCULATION GST PRICING Give customers a true view of what they will be paying