Notice of Inquiry into Australian retail electricity prices
On 27 March 2017 the Treasurer, the Hon Scott Morrison MP, issued a notice requiring the Australian Competition and Consumer Commission (ACCC) to hold an Inquiry into the supply of retail electricity and the competitiveness of retail electricity prices in the National Electricity Market (NEM) pursuant to subsection 95H(1) of the Competition and Consumer Act 2010.
Matters to be taken into consideration in the Inquiry shall include, but not be restricted to:
- the key cost components of electricity retail pricing in the NEM and how they have changed over time;
- the existence and extent of any barriers to entry, expansion and/or exit in retail electricity markets;
- the extent and impact of vertical integration in the NEM;
- the existence of, or potential for, anti-competitive behaviour by market participants and the impact of such behaviour on electricity consumers;
- any impediments to consumer choice, including transaction costs, a lack of transparent information, or other factors;
- the impact of diverse customer segments, and different levels of consumer behaviour, on electricity retail behaviour and practices;
- identifying any regulatory issues, or market participant behaviour or practices that may not be supporting the development of competitive retail markets;
- the profitability of electricity retailers through time, and the extent to which profits are, or are expected to be, commensurate with risk; and
- all wholesale market price, cost and conduct issues relevant to this inquiry.
Conduct of the Inquiry
The Inquiry commenced on 27th March 2017.
This is not an Inquiry in relation to any particular person or persons.
The ACCC must submit a preliminary report to the Treasurer within 6 months and its final report following the Inquiry before 30 June 2018.
Further information about the Inquiry can be found on the ACCC’s website (www.accc.gov.au).