The Australian Competition and Consumer Commission has issued its determination on amendments to the National Electricity Code to facilitate the introduction of full retail competition (FRC).
"The code changes establish the broad framework for the introduction of FRC, which will eventually enable all customers, including households, to choose their electricity retailer", Acting ACCC Chairman, Mr Sitesh Bhojani, said today.
"It will help to ensure that the benefits of competition reform are translated into greater choice, improved quality and lower prices for consumers".
The code changes allow:
- retail level metering data to be used in the current wholesale electricity market
- the details of metering arrangements to be determined by each jurisdiction
- competition to occur on the basis of either existing meters or time-of-use (interval) meters
While the code changes establish a framework for the introduction of FRC, the details relating to FRC are currently being finalised by state governments in consultation with consumer groups, industry participants, regulators and other state governments.
"The ACCC is eager for FRC to be implemented in all States in line with their planned timetables, so that consumers can enjoy the benefits of FRC as soon as possible", Mr Bhojani said.
"The ACCC would have concerns if any of the States delayed their FRC timetable or abandoned contestability altogether.
"It is vital that any reforms that can stimulate demand side responsiveness are implemented otherwise the market will need to continue to outlay large amounts of capital on generation or network investments that are only used to supply relative short periods of time.
"This is of particular importance in jurisdictions such as South Australia, where there is a tight supply and demand balance, especially during the summer peak".