EXPLANATORY STATEMENT
Issued by authority of the Assistant Minister for Productivity, Competition, Charities and Treasury
Competition and Consumer Act 2010
Competition and Consumer (Price Inquiry— Electricity) Amendment (Inquiry Extension) Direction 2026
Section 95H of the Competition and Consumer Act 2010 (the Act) provides that the Minister may require the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into a specified matter or matters.
The Competition and Consumer (Price Inquiry— Electricity) Amendment (Inquiry Extension) Direction 2026 (the Direction) is made under subsection 95H(1) of the Act. The Direction amends the Competition and Consumer (Price Inquiry–Electricity) Direction 2025.
On 20 August 2018, the then Treasurer directed the ACCC to hold a price inquiry into the prices, profits, and margins in relation to the supply of electricity in the National Electricity Market, with interim reports at least every six months and a final report due by 31 August 2025. The Competition and Consumer (Price Inquiry–Electricity) Direction 2025 extended the ACCC electricity price inquiry end date from 31 August 2025 to 30 June 2026.
The Direction further extends the ACCC electricity price inquiry end date from 30 June 2026 to 30 June 2027 and requires the ACCC to provide an additional interim report by 31 December 2026.
As the ACCC requires a direction to collect data to prepare electricity inquiry reports regarding prices and bills, this will enable the ACCC to continue to collect and report on the impact of any changes in wholesale electricity prices on retail prices.
The Direction is a legislative instrument for the purposes of the Legislation Act 2003. In accordance with item 2 of the table in section 9 and item 3 of the table in section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015, the instrument is not disallowable and does not sunset as it is a direction by a Minister to a person or body. It is appropriate that this instrument is not disallowable as it is a ministerial direction, and therefore executive control is intended. Similarly, the direction is intended to remain in place until the inquiry is completed or unless and until revoked by the Minister, and therefore it is appropriate that it not sunset.
The Direction commences the day after the instrument is registered.
A statement of Compatibility with Human Rights is at Attachment B.
ATTACHMENT A
Details of the Competition and Consumer (Price Inquiry— Electricity) Amendment (Inquiry Extension) Direction 2026
Section 1 – Name
This section provides that the name of the instrument is the Competition and Consumer (Price Inquiry— Electricity) Amendment (Inquiry Extension) Direction 2026 (the Direction).
Section 2 – Commencement
The instrument commences the day after it is registered on the Federal Register of Legislation.
Section 3 – Authority
The instrument is made under the Competition and Consumer Act 2010 (the Act).
Section 4 – Schedules
This section provides that each instrument that is specified in the Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule, and any other item in the Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Item 1 of Schedule 1 provides that the ACCC must give the Treasurer a second interim report by 31 December 2026.
Item 2 repeals existing section 8 and inserts a new section 8 providing that the inquiry must be completed, and a report on the matter of the inquiry given to the Treasurer, by 30 June 2027. A note to section 8 explains that the previous date for the completion of the inquiry was 30 June 2026 and that this Direction extends this.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Competition and Consumer (Price Inquiry – Electricity) Amendment (Inquiry Extension) Direction 2026
This 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
The Competition and Consumer (Price Inquiry— Electricity) Amendment (Inquiry Extension) Direction 2026 (the Direction) amends the Competition and Consumer (Price Inquiry–Electricity) Direction 2025 to extend the ACCC electricity price inquiry end date from 30 June 2026 to 30 June 2027, with a final report by 30 June 2027, and requires the ACCC to provide a second interim report by 31 December 2026.
This will enable the ACCC to continue to collect and report on the impact of any changes in wholesale electricity prices on retail prices.
Human rights implications
This instrument does not engage any of the applicable rights or freedoms.
Conclusion
This instrument is compatible with human rights as it does not raise any human rights issues.