Energy industry welcomes confirmation of competitive NSW market

The energy industry has welcomed the Independent Pricing and Regulatory Tribunal’s (IPART’s) draft report released yesterday, which confirms that the NSW electricity market is operating competitively.

Australian Energy Council General Manager of Policy, Kieran Donoghue, said “Since electricity markets were deregulated in NSW in 2014, the trend is towards consumers switching from standing offer contracts to market offers.  This is a positive development as market offers can deliver real savings for consumers who are prepared to shop around.

“In fact, IPART’s draft report found that the market offers available in July 2016 could deliver savings of up to $445 per annum for residential customers.  Small business customers could save up to $850 per annum.

“IPART has also confirmed that retailers are behaving appropriately in setting electricity prices – the recent price changes retailers announced in July 2016 were confirmed to reflect changes in the underlying costs of supplying small customers”, Mr Donoghue said.

“This report shows that the retail energy market in NSW is a vibrant one.  There has been an increase in the number of retailers for the second year in a row following deregulation.  Six retailers entered the market in 2015/16, up from five new entrants the previous year.  This means that the NSW market is to offer customers choice, service innovations and competitive prices.

“It is important for customers to continue to shop around for the best deal in the market for them”, Mr Donoghue said.  “There are many ways to switch, including the government-run www.energymadeeasy.gov.au which can help in comparing energy market offers. This free, independent service allows consumers to compare all electricity and gas retailers in their area.”

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.