Competition and Consumer (Price Inquiry – Electricity) Instrument 2025
The Australian Competition and Consumer Commission, makes the following notifiable instrument.
Dated 24 September 2025.
Gina Cass-Gottlieb Chair
Contents
Part 1—Preliminary 1
- Name....................................................1
- Commencement..............................................1
- Authority..................................................1
- Definitions.................................................1
Part 2—Price inquiry into electricity 3
- Commission to hold an inquiry.....................................3
- Directions on matters to be taken into consideration in the inquiry................3
- Directions as to holding the inquiry..................................3
- Period for completing the inquiry....................................4
- Commencement of inquiry........................................4
Part 1—Preliminary
1 Name
This instrument is the Competition and Consumer (Price Inquiry—Electricity) Instrument 2025.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Competition and Consumer Act 2010.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
exempt supply has the meaning given by subsection 95A(1) of the Act.
goods has the meaning given by subsection 95A(1) of the Act.
inquiry has the meaning given by subsection 95A(1) of the Act.
national electricity market has the same meaning as in the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia as in force at the commencement of this instrument.
person has the meaning given by subsection 95A(1) of the Act. price has the meaning given by subsection 95A(1) of the Act. services has the meaning given by subsection 95A(1) of the Act.
State or Territory authority has the meaning given by subsection 95A(1) of the Act.
supply has the meaning given by subsection 95A(1) of the Act.
the Act means the Competition and Consumer Act 2010.
Part 2—Price inquiry into electricity
5 Commission to hold an inquiry
(1) Under subsection 95H(1) of the Act, the Commission is required to hold an inquiry into the supply of electricity in the national electricity market.
(2) For the purposes of subsection 95J(1) of the Act, the inquiry is to be held in relation to the supply of goods that are electricity.
(3) Subsection (1) does not authorise the holding of an inquiry into a supply of a good or service:
(a) that is an exempt supply; or
(b) by a State or Territory.
(4) Under subsection 95J(2), the inquiry is not to be held in relation to the supply of electricity by a particular person or persons.
6 Directions on matters to be taken into consideration in the inquiry
Under subsection 95J(6) of the Act, the Commission is directed to take into consideration all of the following matters in holding the inquiry:
- electricity prices in the national electricity market, including:
- prices offered to consumers and variations to those prices; and
- analysis of the impact of wholesale prices on retail prices; and
- wholesale market prices and relevant contributing factors, including:
- bidding behaviour of electricity generators for the sale of electricity into the wholesale market; and
- any other relevant factors;
- margins and profits of electricity generators and retailers and relevant factors contributing to those margins and profits;
- impact of policy changes in the national electricity market.
7 Directions as to holding the inquiry
Under subsection 95J(6) of the Act, the Commission is directed to:
- make use of publicly available information, including any relevant information published by:
- Australian Energy Regulator; and
- Australian Energy Market Commission; and
- Australian Energy Market Operator; and
- give the Treasurer an interim report by 31 December 2025; and
- where appropriate, make recommendations to the Treasurer to take any proportional and targeted action considered necessary to remedy any failure by market participants (or the market as a whole) to deliver competitive and efficient electricity prices for customers.
8 Period for completing the inquiry
For the purposes of subsection 95K(1) of the Act, the inquiry is required to be completed, and a report on the matter of the inquiry given to the Treasurer, by no later than 30 June 2026.
9 Commencement of inquiry
The commencement date of the inquiry is 30 August 2025 at the office of the Commission, Level 27, 135 King Street, Sydney NSW 2000.
Overview
The Competition and Consumer (Price Inquiry – Electricity) Instrument 2025, enacted by the Australian Competition and Consumer Commission, aims to address the complexities and potential inefficiencies in the pricing mechanisms of the national electricity market. This legislation mandates the Australian Competition and Consumer Commission to conduct a comprehensive inquiry into the supply of electricity within the national electricity market. The primary policy objective is to ensure that electricity prices are competitive and efficient, thereby protecting consumers and fostering fair market practices. The inquiry is designed to consider various factors, including the impact of wholesale prices on retail prices, bidding behaviour of electricity generators, and the overall market structure. By directing the Commission to use publicly available data and provide an interim report to the Treasurer by 31 December 2025, the instrument seeks to facilitate informed decision-making and targeted actions to rectify any market failures. Ultimately, the instrument's goal is to enhance transparency and fairness in the electricity market, ensuring that consumers receive competitive prices.
Scope and Application
The Competition and Consumer (Price Inquiry—Electricity) Instrument 2025 applies to the Australian Competition and Consumer Commission (ACCC), which is mandated to conduct an inquiry into the supply of electricity within the national electricity market as defined under the National Electricity Law. This inquiry is intended to examine various aspects of electricity pricing, including consumer prices, variations, the impact of wholesale prices on retail prices, and the wholesale market prices, along with relevant contributing factors such as bidding behaviour of electricity generators. The inquiry specifically excludes exempt supplies and supplies by state or territory entities, and it is not directed at particular persons or companies. The instrument, made under the Competition and Consumer Act 2010, compels the ACCC to consider publicly available information from entities such as the Australian Energy Regulator, the Australian Energy Market Commission, and the Australian Energy Market Operator. The Commission must provide an interim report to the Treasurer by 31 December 2025 and complete the inquiry by 30 June 2026. The instrument came into effect the day after its registration.
Key Provisions
The Competition and Consumer (Price Inquiry – Electricity) Instrument 2025, made under the Competition and Consumer Act 2010, mandates the Australian Competition and Consumer Commission to undertake a comprehensive inquiry into the supply of electricity in the national electricity market (sections 5–9). This inquiry specifically examines the supply of electricity as a good, excluding exempt supplies and supplies by state or territory entities (section 5(2) and (3)). The Commission is tasked with considering various aspects, such as electricity prices offered to consumers, variations in those prices, the impact of wholesale prices on retail prices, and the bidding behaviour of electricity generators in the wholesale market, among other relevant factors (section 6). The Commission is also directed to make use of publicly available information from entities like the Australian Energy Regulator, the Australian Energy Market Commission, and the Australian Energy Market Operator (section 7). The inquiry must be completed and a report submitted to the Treasurer by 30 June 2026 (section 8), with an interim report due by 31 December 2025 (section 7). The Commission is further instructed to provide recommendations to the Treasurer for any necessary actions to ensure competitive and efficient electricity prices for customers (section 7).
The obligations imposed by this instrument on the Australian Competition and Consumer Commission include conducting a thorough and detailed inquiry into the supply of electricity in the national electricity market (section 5). The Commission must consider a broad range of factors as outlined in section 6, ensuring that the inquiry is comprehensive and takes into account all relevant aspects of electricity pricing and supply. Additionally, the Commission is required to utilise publicly available information from specified entities and to submit an interim report by 31 December 2025 and a final report by 30 June 2026 (sections 7 and 8). The Commission must also provide recommendations to the Treasurer for any actions deemed necessary to address issues related to competitive and efficient electricity prices (section 7). These obligations ensure that the inquiry is both thorough and informed, providing valuable insights into the electricity market and potential areas for improvement.
Breaches of the obligations imposed by this instrument could lead to various consequences. While the instrument does not explicitly state offences or penalties, failure to comply with the Commission’s directions or to submit the required reports could result in legal action or other remedies under the Competition and Consumer Act 2010. For instance, non-compliance with statutory obligations could lead to civil penalties, including fines. Additionally, if the inquiry is not conducted in accordance with the specified directions, it could result in the inquiry being deemed invalid, leading to further legal consequences. The Commission’s recommendations to the Treasurer, if not followed, could also lead to subsequent legislative or regulatory actions aimed at addressing the issues identified in the inquiry. The potential civil and administrative consequences underscore the importance of adhering to the instrument’s requirements.