On 27 March 2017 the Treasurer, the Hon Scott Morrison MP, directed the ACCC to hold an inquiry into the supply of retail electricity and the competitiveness of retail electricity prices.
Scope of inquiry
Matters considered by the inquiry included, but were not restricted to:
- the key cost components of electricity retail pricing and how they have changed over time
- the existence and extent of any barriers to entry, expansion and/or exit in retail electricity markets
- the extent and impact of vertical integration
- the existence of, or potential for, anti-competitive behaviour by market participants and the impact of such behaviour on electricity consumers
- any impediments to consumer choice, including transaction costs, a lack of transparent information, or other factors
- the impact of diverse customer segments, and different levels of consumer behaviour, on electricity retailer behaviour and practices
- identifying any regulatory issues, or market participant behaviour or practices that may not be supporting the development of competitive retail markets
- the profitability of electricity retailers through time and the extent to which profits are, or are expected to be commensurate with risk
- all wholesale market price, cost and conduct issues relevant to the inquiry.
The final report was published on 11 July 2018 following the report being provided to the Treasurer.