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The Australian Competition and Consumer Commission (ACCC) has
publicly released its Retail Electricity Pricing Inquiry Final
Report, entitled "Restoring electricity affordability and
Australia's competitive advantage".
The report, which was released on 11 July 2018, recommends
comprehensive reforms at all levels of the electricity supply chain
to 'reset' the National Electricity Market.
To appreciate how things might change for generators, networks,
retailers, customers and the hedge market, review our infographic
- Prevent acquisitions resulting in the control of more than 20
per cent generation capacity in any NEM region. (Recommendation
- Separate Queensland Government's generation assets into 3
independent portfolios, each with a mix of generation assets. (Rec.
- Change the market rules to better prevent market manipulation
by preventing generators from bidding in bad faith, fraudulent or
misleading ways. (Rec. 3)
- Networks in Queensland and Tasmania and Essential Energy in NSW
to write-down regulatory asset base. Privately-owned networks in
NSW use rebates to offset impact of over-investment. Empower the
AER to monitor effect of write-downs and rebates. (Rec. 11 and
- Amend rules to reduce complexity and better deal with asset
stranding (including how costs will be shared between users and
networks) and reliability requirements, including aligning with
customer preferences for affordability. (Rec. 13, 16 and 17)
- Allow distributors to develop off-grid supply arrangements.
- Counterincumbency by amending customer transfer rules to limit
customer clawback opportunity and expedite customer transfers.
(Rec. 8 and 9).
- Further harmonise retailer regulation by having each State (and
Territory) fully implement the NECF and minimise derogations. (Rec.
26, 27 and 28)
- In non-price regulated jurisdictions replace standing offer
with default pricing, set by the AER. (Rec. 30)
- Retailers to advertise non-conditional discounts off the
AER-set default price. Any further conditional discounts to
correlate with actual retailer savings. (Rec. 32, 33 & 34)
- Empower AER to price monitor & report more extensively.
- Introduce mandatory assignment of cost-reflective network
pricing on retailers to boost efficiency and fairness; and support
take-up of smart meters. (Rec. 14 and 15).
- NEG is consistent with competition and affordability
imperative. (Rec. 5)
- Remove or substantially reduce Federal and State
feed-in/incentive schemes for small-scale renewable generation.
(Rec. 24 & 25).
- Implement program for cheap Federal Government PPAs for later
years of new generation projects, to allow developers to finance
new generation projects. (Rec. 4).
- Require aggregated reporting of over-the-counter hedge trades
that are anonymised and published, to improve market transparency
and permit a more even playing field for smaller players to access
cost-effective hedging. (Rec. 6).
- Introduce market making obligations to boost hedge market
activity in South Australia. (Rec. 7).
- Implement a mandatory code of conduct for Intermediaries /
comparators to ensure customers are provided with real comparisons
of offers and provide support government-funded comparison
websites. (Rec. 34, 35 & 36)
- Additional funding and measures to support vulnerable and
hardship consumers and small businesses. (Rec. 38, 39, 51 &
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