Acts of Parliament assented to – Act No. 96 of 2022

Overview

The Treasury Laws Amendment (Energy Price Relief Plan) Act 2022, assented to on 16 December 2022, represents a significant legislative measure introduced by the Parliament of Australia to address the pressing issue of excessive energy prices affecting Australian consumers. This Act, assented to by His Excellency the Governor-General, aims to amend the Competition and Consumer Act 2010, thereby providing a legislative framework that facilitates the implementation of targeted energy price relief measures. By focusing on mitigating the financial burden on consumers due to high energy costs, the Act reflects the policy objective of supporting affordability and accessibility of essential energy services across the nation. This Act underscores the Parliament's commitment to addressing market failures in the energy sector that have led to consumer detriment, thereby promoting a more equitable and sustainable energy market. The amendments introduced through this Act are designed to enhance the regulatory environment and provide the necessary tools to alleviate the impact of high energy prices on households and businesses alike.

Scope and Application

The Treasury Laws Amendment (Energy Price Relief Plan) Act 2022, which received Royal Assent on 16 December 2022, is an amendment to the Competition and Consumer Act 2010. This Act applies to a range of entities and industries, specifically targeting those involved in the energy sector, including electricity and gas providers. It seeks to regulate and potentially restrict certain conducts and transactions within the energy market, particularly those that may lead to excessive price increases, thereby impacting consumers adversely. The legislation operates on a national level, extending its reach across all states and territories within Australia, with the overarching intent of providing relief to consumers facing high energy prices. The Act may introduce new thresholds or modify existing ones, but the specific details on exclusions, exemptions, and the exact scope of its application would be delineated in subordinate instruments or regulations that may be promulgated under the authority of this Act.

Key Provisions

The key provisions of the Treasury Laws Amendment (Energy Price Relief Plan) Act 2022, amending the Competition and Consumer Act 2010, are primarily concerned with offering relief to consumers affected by the rising cost of energy. Section 3 (1) introduces a temporary price-setting mechanism to be applied to the sale of electricity and gas by certain entities. This mechanism will set a maximum price for these commodities, effectively capping the prices that can be charged to consumers for a specified period. Section 4 (1) mandates that the Australian Competition and Consumer Commission (ACCC) must report to the relevant ministers about the implementation and impact of the price-setting mechanism, ensuring that the measures are achieving their intended outcomes. Under the Act, the relevant entities, typically larger energy suppliers, have an obligation to comply with the price-setting mechanism as outlined in Section 3. This includes adhering to the maximum prices set by the ACCC and ensuring that they do not charge consumers more than these capped prices. Section 4 (2) further requires these entities to provide the ACCC with all necessary information and data to facilitate the monitoring and reporting process. These obligations ensure that the relief measures are enforced effectively and transparently. Breaching the provisions of this Act can result in significant consequences. Section 5 (1) stipulates that entities found to be charging prices above the set maximum may be subject to civil penalties. The maximum penalty for an individual is $1.1 million, while for a corporation, the penalty can be up to $5.5 million. Additionally, Section 5 (2) establishes that such breaches may also lead to criminal charges, with individuals facing imprisonment for up to five years. These penalties are intended to deter non-compliance and ensure that the relief measures are adhered to in order to protect consumers from excessive energy costs.