Dec 21 2017

Independent report casts doubt over Thwaites Review

An independent expert report casts doubt over the analysis attached to the Thwaites Review of Retail Markets in Victoria, the energy industry said today.

The Thwaites Review investigated the operation of the electricity and gas markets in Victoria. Its report was released in August.

Australian Energy Council General Manager Corporate Affairs, Sarah McNamara, said in proposing the re-regulation of the retail electricity market, the Thwaites Review relied heavily on analysis provided by Carbon and Energy Markets (CME) of the gross margins that are likely being achieved. 

“This new report suggests the CME analysis of retail margins of in excess of $400 per customer in Victoria is flawed because of:

  • Questionable choices in the methodological approach used;
  • Factual errors in its calculations; and,
  • A preference to ignore publicly available data and rely instead on analytical assumptions.

“The new report by consultants Oakley Greenwood was released today by the Australian Energy Council. It found the CME analysis of retail margins is likely to be out by a factor of at least 30%,” Ms McNamara said.

"The industry accepts that more needs to be done to engage with customers and make energy bills easier to understand – that’s why the industry supports many of the recommendations of the Thwaites Report.”

Ms McNamara said a decision to re-regulate the market will have far-reaching unintended consequences and these have not been assessed. 

"The Victorian government can’t fix rising wholesale prices by regulating retail markets. Those increases will not be stopped until we have stable national energy and climate policy which will enable investment in new generation.

“If the Government does determine that it wants to re-regulate the electricity industry it should do so on the basis of robust data and following a comprehensive consultation with industry and community stakeholders to determine the best method to deliver a re-regulation. Victorian consumers are owed that consideration.”

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.

Related News

News

Further power bill relief on the horizon: Independent report

An independent report has predicted power bills will continue to fall as new generation capacity enters the National Electricity Market.

Dec 21 2020
News

Industry pandemic response recognised

The Australian Energy Council has welcomed recognition of the assistance energy retailers have provided to customers impacted by COVID-19.

Nov 30 2020
News

Energy retailers continue to provide support

Energy retailers are continuing to provide support to households and small businesses impacted by the COVID-19 pandemic, the Australian Energy Council said today.

Oct 30 2020
GET IN TOUCH
Do you have a question or comment for AEC?

Send an email with your question or comment, and include your name and a short message and we'll get back to you shortly.

Call Us
+61 (3) 9205 3100