ACCC facilitates smooth introduction of full retail competition in the ACT

The Australian Competition and Consumer Commission has issued a draft determination proposing to allow the Australian Capital Territory to delay the introduction of competition for some types of metering services in the electricity market.

The draft decision proposes to facilitate a smooth transition to full retail competition, which begins in the ACT on 1 July 2003. Full retail competition allows consumers to choose their electricity retailer.

The proposed code changes provide the local electricity distribution company with a monopoly over the provision of metering services. Metering services involve the provision, installation, maintenance, routine testing and inspection of electricity measuring equipment for domestic and business users.

In its draft determination, the ACCC concluded that introducing competition in metering services is not necessary, at this stage, for the benefits of full retail competition to be realised. By allowing the distribution company to have a temporary monopoly, the systems required to allow customer switching can be more efficiently and cost effectively developed and implemented. Customers will still be able to choose their retailer.

"For the full benefits of retail competition to be realised it is important to have an environment which allows consumers to easily switch retailers", Mr Ed Willett, ACCC Commissioner responsible for energy matters, said today. "This decision will mean the process for consumers who choose to switch retailers is straightforward".

A copy of the draft determination will be available on the ACCC's website: http://www.accc.gov.au or from Mrs Maxine Helmling on (02) 6243 1246.