Energy Ministers Recognise Benefits of Comparison Rate

The decision by Energy Ministers to implement a reference price to make it easier to choose an energy deal is a welcome step forward, energy retailers said today.

The Australian Energy Council’s Chief Executive Sarah McNamara said, “it has been acknowledged time and time again by independent experts that improved comparator tools will help all customers to identify cheaper energy deals in a competitive energy market. 

“A comparator rate, or reference price, will enable Australian homes and businesses to locate cheaper deals.  A Default Market Offer, which essentially re-regulates the market, would have the opposite effect, and we are pleased to see that COAG has received advice to that effect.

“Electricity retailers look forward to working with government to implement the comparator rate solution as soon as possible.”

Ms McNamara said that the AEC also looked forward to continuing to work with the Energy Security Board on the reliability obligation.

“While we acknowledge the progress made on the reliability obligation, it is disappointing that COAG has again missed the opportunity to deal with the ongoing emissions policy vacuum.”

About the Australian Energy Council

The Council represents 23 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.