IF YOU are planning to leave Ergon energy for another provider, you won't be able to return.

This is the message Pacman & Sons Timber Proserpine owner Chris Pilgrim wants to send to the community.

The former owners of his premise switched from Ergon to a retailer called Q Energy.

Unhappy with the company, Mr Pilgrim attempted to switch back to Ergon, only to receive a letter informing him that due to a "non-reversion” policy, his business was not allowed to return.

"Once a transfer to another retailer has occurred, the occupants of the premises (including all future tenants and property owners) do not have the option to revert back to Ergon Energy,” the letter said.

The Queensland Government introduced the policy in 2007 to increase private competition in the energy market.

Mr Pilgrim said his experience showed the policy wasn't working for small towns like Proserpine.

"What happened to me is a load of crock, I didn't change my provider and when you ring up other suppliers like Origin and AGL, they say it's an Ergon area,” he said.

"This is crazy, it is supposed to generate competition and no-one knows where the competition is here.”

A spokesperson for Energy Minister Mark Bailey said there were still options for non-Ergon customers.

"While it is not possible for customers to return to Ergon, residential and small business customers (consuming less than 100 megawatt-hours of electricity per year) can request their retailer put them on a standard retail contract when the current market contract ends,” the spokesperson said.

"The non-reversion policy in regional Queensland has given private sector retailers an incentive to compete in regional Queensland when conditions are favourable and customers can benefit.

The spokesperson said the Government would consider the implications of retaining or removing the non-reversion policy as part of broader competition reforms.

The LNP energy spokesman, Michael Hart, said a change could be taken to the next state election.

"The non-reversion policy is written into the Electricity Act to stop Ergon unfairly competing with other people in regional Queensland,” he said.

"It absolutely needs to be looked at and a Productivity Commission draft report said it should be removed.

"Once the competition is there, you can reasonably look at making sure competition is fair, until then our position is to increase competition.”

There is no legal obligation on Ergon to inform customers about the non-reversion policy, however the information is included in welcome packs to new customers.