ACCC to recommend radical changes to save Victorians hundreds of dollars on power bills

VICTORIANS would save hundreds of dollars a year on power bills under radical changes to the energy market to be recommended today by the consumer watchdog.

VICTORIANS would save hundreds of dollars a year on power bills under radical changes to the energy market to be recommended today by the consumer watchdog.

Big companies could be banned from further acquisitions and mergers, while the regulator would gain major new powers to watch out for generators and retailers manipulating the energy market.

In its long-anticipated report, the Australian Competition and Consumer Commission has found big power firms are charging artificially high prices to their retail ­divisions, then passing them on to customers.

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It says an overhaul is needed to crack down on retailers and wholesalers and bolster competition.

Households in Victoria, which Canstar predicts will pay an average of $1671.32 this year — up $571 over the past two years — would see electricity and gas bills slashed under the changes.

The ACCC report will argue a major overhaul of the National Electricity Market is needed to “bring down prices and restore consumer confidence and Australia’s competitive advantage”. Other recommendations include:

THE Australian Energy Regulator to have more powers to monitor “market manipulation”;

CHANGES to bolster competition among wholesalers and retailers and drive down network charges;

SPEEDING up of the “customer transfer process”, so customers can move to new offers quickly;

A NEW benchmark rate to be set by the AER, so that customers can easily compare discounts; and

FORCING third party comparator websites to declare commissions.

Victorians would save hundreds of dollars a year on power bills under radical changes to the energy market to be recommended today by the consumer watchdog. Generic picture: iStock

The Herald Sun has revealed energy retailers are increasingly worried they will be the next target of a royal commission, amid growing public anger over power bills.

The ACCC, which handed its report to the Turnbull Government last week, has also called for the states to adopt the National Energy Guarantee to drive down prices and ensure the grid is reliable.

It slammed “discounts” as misleading. “Pay on time discounts” too regularly operate as overly harsh late penalties.

Electricity and gas retailers have been disconnecting almost 1000 Victorian households a week over unpaid bills, and a record number of customers on hardship programs owe millions of dollars. Most retailers upped prices early this year largely blaming higher wholesale costs.

The cap on further mergers and acquisitions will apply to companies with more than 20 per cent of the generation market. But new power generation would be allowed.

The report also says there is a case for government support to underpin long-term contracts for large commercial and industrial users that generate new dispatchable power.

The ACCC will also call for the improved rules for households to also apply to small businesses.

The government is expected to respond to the report’s recommendations in coming months.

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