ACCC’s push for electricity overhaul

CONSUMERS could save hundreds of dollars a year on power under a plan to overhaul Australia’s “unacceptable” electricity market to be revealed today.

CONSUMERS could save hundreds of dollars a year on power under a plan to overhaul Australia’s electricity market to be revealed today.

Power companies would have to make it easier for customers to compare discounts and simpler to switch to cheaper offers under a blueprint by Australia’s competition watchdog.

Wholesalers and retailers would have to improve competition and slash network charges while the regulator would be given greater powers to target price gouging as part of the proposed overhaul.

In a report to be released today, the Australian Competition and Consumer Commission says the electricity market is “unacceptable and unsustainable” and calls for an overhaul to push down prices.

Warning households are suffering unnecessary costs, the ACCC says savings of hundreds of dollars a year could be made if these are removed.

The report proposes a series of reforms to the market in a bid to “bring down prices and restore consumer confidence and Australia’s competitive advantage”.

The Australian Competition and Consumer Commission says the electricity market is “unacceptable and unsustainable”. Picture: Thinkstock

“Significant gains can be made for consumers and businesses,” the report says.

In moves to make prices simpler and fairer, providers would have to speed up transfers for people who switch to cheaper rates and “pay on time” discounts would be reviewed to prevent them being used to penalise late payments.

Prime Minister Malcolm Turnbull will discuss the findings in a speech in Brisbane today but he will not yet reveal his government’s response.

But he will latch on to a recommendation backing his National Energy Guarantee (NEG) as he tries to stave off a split within his government over support for renewables versus coal-fired power.

A bloc of Nationals and some Liberals oppose the NEG and want changes including a $5 billion fund to support a new coal-fired power station in north Queensland.

In other measures to stop price fluctuations, the ACCC will call for the Australian Energy Regulator to be given tougher powers to stamp out “market manipulation” in which generators artificially restrict supply.

Queensland’s Energy Minister Dr Anthony Lynham said some of the ACCC’s recommendations were in line with what the Palaszczuk Government was already doing - like those involving increased generation and retail reforms.

But he said Queensland was open to looking at further action on retailers

He honed in on suggestions within the report that the State should sell off two of the generation businesses after creating a third.

“Queenslanders don’t want us to sell their electricity assets – their power stations, poles and wires that deliver electricity across the state, no matter where you live,” Dr Lynham said in a statement.

“The Palaszczuk Government’s actions are already seeing electricity prices decrease and this has been acknowledged by the ACCC.

“Selling assets hasn’t worked in New South Wales and Queensland continues to prop up the National Energy Market.

“And because we own the assets, we’ve been able to direct prices to be lower.

Opposition Leader Deb Frecklington has also baulked at the ACCC’s suggestion that two of the government-owned corporations should be sold off.

“We have already ruled that out,” Ms Frecklington said.

But she backed the recommendation that a third GOC be created.

Both Labor and the LNP have committed to doing so.