Jun 15 2018

Re-regulation won’t fix energy customer concerns

Re-regulating energy prices will not fix the concerns of Australian households and businesses, and could actually make things worse by killing innovation and reducing the benefits of competition, according to an independent Government report released today.

The Australian Energy Market Commission’s (AEMC) annual review of retail energy competition has revealed growing dissatisfaction from consumers resulting from rising energy bills and confusion over discounting and how energy is sold to consumers.

Australian Energy Council General Manager, Corporate Affairs, Sarah McNamara, said the sobering review was a sharp reminder to the industry of the changes needed to re-gain the trust of consumers.

“We know energy bills have increased sharply as a result of tight supply in both gas and electricity markets,” Ms McNamara said, “The AEMC report sends a clear message that customers want greater transparency and simplicity in how energy is sold. And, fundamentally, they would like to see price relief as soon as possible.

“Importantly, the AEMC warns that re-regulating energy prices is not warranted.  Re-regulation would hit the smallest, most disruptive and most innovative retailers hardest. This would reduce competition and innovation for consumers.

“The Victorian Government is currently considering introducing a Basic Service Offer which would effectively re-regulate prices in Victoria. The AEMC report confirms this would do more harm than good.

“It’s clear energy retailers need to do more to accelerate innovation and improve the way we market energy to customers, whilst supporting all measures to bring down the cost of energy supply. It’s a market that needs to evolve faster to ensure customers are getting the full benefits of competition.” 

 

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

Australian Energy Council congratulates Daniel Westerman

The Australian Energy Council congratulates Daniel Westerman on his appointment as CEO and Managing Director of the Australian Energy Market Operator.

Feb 10 2021
News

New data shows solar shines despite lockdowns

Rooftop solar installation grew by 18 per cent nationally over the last year, according to the Australian Energy Council's latest Solar Report, which showed record growth in solar PV capacity and installations during 2020.

Feb 04 2021
News

Australian Energy Council congratulates Chris Bowen and thanks Mark Butler

The Australian Energy Council congratulates the Hon Chris Bowen MP on his appointment as Shadow Minister for Climate Change and Energy and thanks the Hon Mark Butler MP for his extensive work in the portfolio.

Jan 29 2021
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