A short article to note that today the ACCC’s ‘Inquiry into the National Electricity Market’ (dated 23rd May 2022 … Monday after the Federal Election) has been released today:
As noted on this page:
‘This is the ACCC’s seventh report as part of its inquiry into the prices, profits and margins in the supply of electricity in the National Electricity Market (NEM).’
They also note:
‘Since the report was finalised, there has been a substantial shift in Australian energy markets. We prepared an addendum to the report to explain the drivers of the unprecedented changes, the price impacts we are seeing, and the ACCC’s role.’
The addendum (dated Friday 17th June 2022) is here:
The ACCC also published this Media Release, which includes the note:
‘Making sure energy companies comply with the law
The ACCC actively monitors retailer offers to supply electricity and can take energy retailers to court if they mislead consumers.
“Working jointly with the AER, we have written to energy retailers to remind them of their obligations in relation to electricity prices under the Competition and Consumer Act and the National Electricity Retail Code,” Ms Cass-Gottlieb said.
Retailers cannot set the price of their standing offers above the ‘safety net’ Default Market Offer set by the AER, or (in Victoria) the Victorian Default Offer set by the Essential Services Commission.
The ACCC also enforces legislation aimed at preventing anti-competitive conduct in the electricity market. Part XICA of the Competition and Consumer Act (the Prohibiting Energy Market Misconduct laws) bans generators from manipulating the spot market, for example by withholding supply to inflate prices. It also penalises generators that withhold electricity contracts for the purpose of substantially lessening market competition. We will be closely watching market behaviour in coming months to ensure these rules are not being broken. ‘
We’ll review this with keen interest.
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