Leading consumer and small business groups have criticised the Australian Energy Market Commission (AEMC) for failing to address the “loyalty tax” harming households and small business in its Pricing Review final report.
While the draft report recommended retailers charge same-plan customers the same price, the final report backtracked to disclosure-based measures, requiring retailers only to tell consumers how much more they’re paying, rather than ensuring fair pricing outright.
Dr Brendan French, CEO of Energy Consumers Australia, called it “a massive missed opportunity,” noting retailers fund unrealistic introductory prices by overcharging loyal customers, fuelling a market driven by “churn, not service.” He stressed over a million households, often lower-income, are subsidising this cycle, and reiterated calls for a consumer duty to enforce fairness.
Patricia Sparrow, CEO of COTA Australia, highlighted that older Australians, often on fixed incomes, are least likely to switch plans and most likely to be penalised. ECA’s February 2026 research reinforces this concern: 75% of Australians consider it unfair to loyal customers, and 67% unfair even to new customers benefiting from lower prices