Competitive market continues to deliver best value for customers

The Australian Competition and Consumer Commission’s report into the retail electricity market reinforces that competitive market deals continue to offer the greatest value to consumers and that retailers have been responding positively to market changes.

The Australian Energy Council’s Chief Executive Sarah McNamara said the report shows that it is easier than ever to engage in the market, and it pays to shop around.

“There are still significant savings available with smaller retailers challenging the larger incumbent retailers. Switching to the cheapest deals could save customers on the regulated prices between $250 and $380 annually.

“At the same time, prices for the customers who are yet to engage in the market have been reduced. Suggestions in the media today that large retailers increased their default offers are incorrect.

“Today the ACCC has again urged government to adopt its other recommendations if costs are to come down further. Network, environmental, and wholesale costs remain high. The ACCC reiterates the need for policy certainty, network asset write-downs, and the removal of unnecessary environmental schemes.

“There has been an increase in the cost of environmental schemes, which includes the Federal Government’s small-scale solar scheme, for example, which the ACCC has recommended should be phased out to save customers money.”

The average cost of environmental policies across the National Electricity Market in 2017-2018 was shown to be $122.

About the Australian Energy Council

The Council represents 21 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.