Towards a better retail electricity market in Australia
Electricity prices in Australia have been rising, despite full retail contestability and deregulation. Grattan Institute analyses why, and shares how the market and retailers could do more for consumers...
Competition was introduced to Australia’s retail electricity market with the intention to put downward pressure on prices paid by consumers. However, electricity prices have continued to rise.
A report by Grattan Institute shows that this rise can be attributed largely to the retail component and less to increased wholesale and network prices, or the introduction of new “green” policies by the government.
The report also stated that while competition should lead to more choices for consumers and greater cost savings, consumers appear to be disengaged and lack sufficient information to make informed choices. As such, consumers are continuing to stay on standing offers that are more expensive than new tariff plans (market offers) – and households are paying more than necessary for electricity.
Find out more from the report here on what can be done to further improve the retail electricity market in Australia and realise the benefits of competition.
By: Grattan Institute