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Competition and Consumer (Price Inquiry—Electricity) Amendment (Inquiry Extension) Direction 2026

Competition and Consumer (Price Inquiry—Electricity) Amendment (Inquiry Extension) Direction 2026

Administered by Department of the Treasury

Legislation au F2026L00798 Not in force Legislative Instrument

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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.

Overview

The Competition and Consumer (Price Inquiry—Electricity) Amendment (Inquiry Extension) Direction 2026 was introduced to address the need for a more comprehensive and extended investigation into the pricing mechanisms within the electricity sector in Australia, particularly in the National Electricity Market. Enacted under Section 95H of the Competition and Consumer Act 2010, this Direction was issued by the Assistant Minister for Productivity, Competition, Charities and Treasury and aims to extend the timeframe for the Australian Competition and Consumer Commission (ACCC) to complete its inquiry into electricity prices, profits, and margins. Initially, the ACCC was directed to conclude its inquiry by 31 August 2025, but this was extended to 30 June 2026 by a previous direction. The 2026 Direction further extends the deadline to 30 June 2027 and mandates an additional interim report by 31 December 2026. This extension allows the ACCC to continue monitoring and reporting on the effects of wholesale price changes on retail electricity prices, ensuring a more thorough and informed analysis of the market dynamics.

Scope and Application

The Competition and Consumer (Price Inquiry—Electricity) Amendment (Inquiry Extension) Direction 2026 applies to the Australian Competition and Consumer Commission (ACCC), which is mandated to conduct an extended inquiry into the prices, profits, and margins in relation to the supply of electricity within the National Electricity Market. This Direction, made under section 95H of the Competition and Consumer Act 2010, extends the completion date of the ACCC’s electricity price inquiry from 30 June 2026 to 30 June 2027, while also mandating an additional interim report by 31 December 2026. The purpose of this Direction is to allow the ACCC to continue monitoring and reporting on the impact of fluctuations in wholesale electricity prices on retail prices. The geographic reach of this Direction is national, as it pertains to the entire National Electricity Market across Australia. There are no stated exclusions, exemptions, or thresholds in this Direction; however, it should be noted that the application of this Direction may be influenced by any subordinate instruments that may extend or restrict its scope.

Key Provisions

The Competition and Consumer (Price Inquiry— Electricity) Amendment (Inquiry Extension) Direction 2026 amends the existing Direction issued in 2025 concerning the Australian Competition and Consumer Commission's (ACCC) inquiry into electricity prices, profits, and margins in the National Electricity Market (section 4). The key change introduced by this Direction is the extension of the end date for the ACCC's inquiry from 30 June 2026 to 30 June 2027. Additionally, the Direction mandates the ACCC to provide an interim report by 31 December 2026 (Schedule 1, item 1). These amendments are designed to allow the ACCC to continue collecting data and reporting on the impact of changes in wholesale electricity prices on retail prices. Under the amended Direction, the ACCC is required to complete its inquiry into electricity prices by 30 June 2027 and submit a final report to the Treasurer (Schedule 1, item 2). This obligation extends the previously mandated timeline, providing the ACCC with additional time to thoroughly analyse and report on the specified matters. Furthermore, the Direction stipulates that the ACCC must deliver a second interim report by 31 December 2026 (Schedule 1, item 1). These requirements underscore the importance of ongoing oversight and reporting in ensuring transparency and accountability in the electricity market. There are no specific offences, penalties, or civil/criminal consequences outlined in the Direction for non-compliance. However, the Direction is a legislative instrument made under the Competition and Consumer Act 2010, and failure to comply with ministerial directions can lead to legal consequences under the Act. The Direction is not disallowable and does not sunset, ensuring that it remains in effect until the inquiry is completed or revoked by the Minister (Explanatory Statement). This legislative approach underscores the executive intent behind the Direction and its necessity for the continued oversight of the electricity market.

Area of Law: Competition Law
Instrument: Direction
Concepts: Reporting & Disclosure Obligations; Repeal & Amendment; Commencement Provisions

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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