In a speech to the Australian Conference of Economists in Canberra today, Chair Rod Sims discussed the ACCC’s approach to market intervention in our current inquiries.
“Enhancing competition does not mean protecting all market participants from failure, nor does consumer protection extend to shielding consumers from price increases set by the markets.”
ACCC Chair Rod Sims delivers a speech to the Australian Conference of Economists, discussing a number of inquires the ACCC is involved with, including the digital platforms inquiry, the retail electricity prices inquiry and the consumer data right.
The ACCC welcomes today’s announcement by the South Australian Chamber of Mines and Energy and SIMEC ZEN Energy of investment in new electricity generation capacity in South Australia.
“The ACCC authorised SACOME members to go to market to find a more competitive supplier of electricity. We did this because, as a group, they had a better chance of securing supply from a new source of generation that would bring new competition to the market,” ACCC Chair Rod Sims said.
Nicole Ross, General Manager ACCC Gas Inquiry Unit, delivered the speech on the ACCC Chairman's behalf due to an unavoidable scheduling conflict. The speech outlines what the ACCC is doing to help bring about a more competitive east coast gas market.
Australia’s east coast gas market remains incredibly tight and users are paying for this with high prices and limited sources of competing supply.
The east coast gas market is at a crossroads and the only real choice is to address the fundamental supply problem, particularly in the south.
The supply situation is most stark in the case of the southern part of the east coast, with the ACCC’s gas inquiry finding that there is not enough production forecast in the southern states to meet southern demand in 2018.
In his annual CEDA address, Chairman Rod Sims launched the ACCC's 2018 Compliance and Enforcement policy. This year, the ACCC will focus on consumer issues in broadband services and energy, competition in the financial services and commercial construction sectors, systemic consumer guarantee issues, and conduct that may contravene the new misuse of market power and concerted practices provisions.
The ACCC has published a preliminary report into the electricity market highlighting significant concerns about the operation of the National Electricity Market, which is leading to serious problems with affordability for consumers and businesses.
Recent discussions about electricity affordability have centred on electricity generation and the 15‑20% price rises in some states. But this discussion ignores so many other issues. In this address, ACCC Chairman Rod Sims reviews the likely drivers of our current electricity affordability issues, and shows why a focus on generation is too narrow.
The Australian Competition and Consumer Commission has today released an issues paper for its inquiry into retail electricity supply and prices in Queensland, NSW, Victoria, South Australia, Tasmania, and the ACT. The ACCC is seeking submissions by the end of June from interested parties.
The paper sets out the key issues that the ACCC will focus on during its inquiry, including: