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FED:'Missed opportunity' to act on power plan loyalty tax

A proposal to clamp down on the loyalty tax paid by disengaged power customers does not go far enough in the view of consumer and small business groups.

Australia's electricity rule-maker initiated a review to tackle the problem of customers ending up on uncompetitive offers after their attractive introductory deals lapsed.

The Australian Energy Market Commission wants to "shine a light" on the problem to nudge more consumers to switch, including forcing retailers to notify long-term customers of foregone savings.

Tallies of how many customers are overpaying by failing to shop around should also be made public.

Consumer and small business groups, including the Council of Small Business Organisations Australia, CHOICE and Financial Counselling Australia, labelled the proposal a "massive missed opportunity".

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