Electricity

ACCC releases electricity monitoring discussion paper

The ACCC is commencing a new inquiry into the supply of electricity in the National Electricity Market and is consulting on how it will undertake this role.

The ACCC has been tasked with monitoring and reporting on the supply of retail and wholesale electricity in Queensland, NSW, Victoria, South Australia, Tasmania, and the ACT, until 2025. It will have a focus on monitoring prices, profits and margins, including the effect of policy changes in the National Electricity Market.

When and how to intervene in markets

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 welcomes new electricity generation investment in South Australia

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.

East coast gas market supply imbalance needs to be addressed

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.

2018 compliance & enforcement priorities

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.

ACCC Retail Electricity Pricing Inquiry: Preliminary Report

The ACCC preliminary report into the electricity market highlights significant concerns about the operation of the National Electricity Market, which is leading to serious problems with affordability for consumers and businesses.