EXPLANATORY STATEMENT
Issued by authority of the Treasurer
Competition and Consumer Act 2010
Price monitoring direction to the Australian Competition and Consumer Commission
Section 95ZE of the Competition and Consumer Act 2010 provides that the Minister may give a written direction to the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs and profits relating to the supply of goods or services by persons in a specified industry and to give the Minister a report on the monitoring.
Under this Direction, the ACCC will monitor the prices, costs and profits relating to the supply of regulated goods by corporations and the supply of goods by liable entities to assess the general effect of the carbon tax scheme in Australia. In this Direction, regulated goods means goods supplied in the natural gas, electricity and synthetic greenhouse gas industries. Liable entities means a corporation for which there is an entry in the Information Database (within the meaning of the Clean Energy Act 2011).
Under this Direction, the ACCC must also report to the Government on its monitoring activities within 28 days of the end of each quarter of each financial year.
This Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
As the arrangements under this Direction largely mirrors the proposed price monitoring provisions contained in Schedule 2 of the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (the Bill), appropriate consultation on these arrangements has already occurred as part of the public consultation on the Exposure Draft of the Bill from 15 October 2013 to 4 November 2013.
The provisions of the Bill were also examined by the Environment and Communications Legislation Committee Inquiry following referral by the Senate on 14 November 2013.
This Direction takes effect for the period 1 March 2014 to 30 June 2015. This Direction may be revoked following the passage of the Bill.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Price monitoring direction to the Australian Competition and Consumer Commission
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
Section 95ZE of the Competition and Consumer Act 2010 provides that the Minister may direct the ACCC to monitor prices, costs and profits relating to the supply of goods or services by persons in a specified industry and to give the Minister a report on the monitoring.
Under this Direction, the ACCC will monitor the prices, costs and profits relating to the supply of regulated goods by corporations and the supply of goods by liable entities to assess the general effect of the carbon tax scheme in Australia. In this Direction, regulated goods means goods supplied in the natural gas, electricity and synthetic greenhouse gas industries. Liable entities means a corporation for which there is an entry in the Information Database (within the meaning of the Clean Energy Act 2011).
Under this Direction, the ACCC must also report to the Government on its monitoring activities within 28 days of the end of each quarter of each financial year.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights and freedoms as price monitoring by the ACCC will affect corporations rather than individuals.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Competition and Consumer Act 2010, enacted by the Australian Parliament, serves to regulate anti-competitive conduct and ensure fair trading practices within the marketplace. The Act was introduced to address issues surrounding monopolies, anti-competitive practices, and consumer protection. The 2014 Price Monitoring Direction to the Australian Competition and Consumer Commission (ACCC) is a legislative instrument designed to have the ACCC monitor prices, costs, and profits related to the supply of regulated goods in the natural gas, electricity, and synthetic greenhouse gas industries, as well as the supply of goods by liable entities. The purpose of this monitoring is to assess the general effect of the carbon tax scheme in Australia. This Direction requires the ACCC to provide a report to the Government on its activities within 28 days of the end of each quarter of each financial year. The Direction is compatible with human rights as it does not engage any of the applicable rights and freedoms, as the monitoring affects corporations rather than individuals.
Scope and Application
The Price Monitoring Direction under Section 95ZE of the Competition and Consumer Act 2010 directs the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs, and profits relating to the supply of goods and services within specified industries, specifically targeting the natural gas, electricity, and synthetic greenhouse gas sectors. This Direction applies to corporations and liable entities, the latter being corporations with an entry in the Information Database as defined under the Clean Energy Act 2011. The ACCC is mandated to report its findings to the Government every quarter, thus ensuring timely oversight of the carbon tax scheme's general effects in Australia. The Direction applies nationally and is effective from 1 March 2014 to 30 June 2015, with the potential to be revoked following the passage of the relevant legislation. The Direction does not extend to individuals but focuses on entities and corporations within the specified industries, and does not specify any exclusions, exemptions, or thresholds within the provided text.
Key Provisions
The main operative sections of this legislative instrument (F2014L00180) are grounded in Section 95ZE of the Competition and Consumer Act 2010. This section empowers the Minister to issue a written direction to the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs, and profits in specified industries, with a particular focus on the natural gas, electricity, and synthetic greenhouse gas sectors (section 95ZE(1)). The ACCC is mandated to report on its monitoring activities to the government every quarter, within 28 days of the end of each financial quarter (section 95ZE(2)). The term "regulated goods" is defined to include goods supplied by corporations in these specified industries, while "liable entities" are defined as corporations with entries in the Information Database under the Clean Energy Act 2011.
The obligations and requirements imposed by this legislation on the ACCC are significant and specific. Primarily, the ACCC must diligently monitor the prices, costs, and profits associated with the supply of regulated goods by corporations and goods by liable entities. This monitoring is aimed at assessing the general effects of the carbon tax scheme in Australia (section 95ZE(1)). Additionally, the ACCC is required to submit detailed reports to the government every quarter, within a strict timeframe of 28 days after the end of each financial quarter (section 95ZE(2)). These reports must include comprehensive analyses and findings from the monitoring activities, ensuring that the government has timely and accurate data to inform policy decisions.
Any breaches of the obligations set out in this legislative instrument may lead to civil or administrative consequences. Although the specific penalties are not detailed in the document, under the Competition and Consumer Act 2010, significant penalties may apply for non-compliance with the monitoring and reporting requirements. These could include fines for corporations found to be in breach of the obligations to provide accurate and timely information to the ACCC. Additionally, failure to report or providing misleading information could result in legal actions against the ACCC for not fulfilling its statutory duties, potentially leading to further administrative or judicial repercussions. The exact penalties would depend on the nature and severity of the breach, as well as the provisions of the Competition and Consumer Act 2010.