Tuesday, 10 March 2020 10:27

ACCC says new laws aimed at reducing power prices for consumers Featured

By

Australia’s competition watchdog the ACCC has released draft guidelines on how electricity retailers and generators should comply with three new laws designed to reduce the price of electricity for consumers.

The three new laws restrict electricity retailers from keeping consumer and small business prices unnecessarily high - and stop generators from inflating wholesale prices or blocking access to critical contracts - with the ACCC warning that these actions can have flow-on effects to the prices consumers and businesses pay.

The draft guidelines, released for consultation on Tuesday, provide examples and information about the new laws, which were introduced by the Treasury Laws Amendment (Prohibiting Energy Market Misconduct) Act 2019, and come into effect on 10 June 2020.

The ACCC’s role is to enforce compliance with the laws, and the consumer watchdog says competition and consumer issues relating to electricity are a “key compliance and enforcement priority” for the Commission in 2020.

“The ACCC will seek to ensure electricity companies set fair prices for customers and do not abuse their market position,” ACCC Chair Rod Sims said.

“Retail electricity prices have already come down under reforms introduced last year, and these guidelines are designed to help power companies understand how to fully comply with the new laws, for the benefit of consumers.”

Sims said the ACCC will continue to closely monitor the behaviour of companies in the electricity markets, and has a range of enforcement tools available ranging from public warning notices and infringement notices to commencing legal proceedings in the Federal Court alleging that companies have breached these laws.

“These new laws will enable us to take electricity companies to court if we have evidence that they are engaging in prohibited conduct in breach of these new provisions,” Sims said.

The new laws prohibit the following conduct:

  • the ‘retail pricing prohibition’ prohibits electricity retailers from charging small customers prices which are not adjusted to reflect sustained and substantial cost reductions in their underlying costs;
  • the ‘electricity financial contract liquidity prohibition’ prohibits generators from restricting access to electricity hedging contracts for an anti-competitive purpose;
  • the ‘electricity spot market prohibitions’ prohibit bidding practices by generators which are engaged in fraudulently, dishonestly or in bad faith and/or for the purpose of distorting or manipulating prices in an electricity spot market.

The ACCC has invited submissions on the draft guidelines by 3 April 2020 via the ACCC Consultation Hub, and has said it will release its final guidelines before thee new laws come into effect on 10 June 2020.

DIGITAL MARKETING HAS NO SOCIAL DISTANCING OR TRAVEL RESTRICTIONS

As part of our Lead Machine Methodology we will help you get more leads, more customers and more business. Let us help you develop your digital marketing campaign

Digital Marketing is ideal in these tough times and it can replace face to face marketing with person to person marketing via the phone conference calls and webinars

Significant opportunity pipelines can be developed and continually topped up with the help of Digital Marketing so that deals can be made and deals can be closed

- Newsletter adverts in dynamic GIF slideshow formats

- News site adverts from small to large sizes also as dynamic GIF slideshow formats

- Guest Editorial - get your message out there and put your CEO in the spotlight

- Promotional News and Content - displayed on the homepage and all pages

- Leverage our proven event promotion methodology - The Lead Machine gets you leads

Contact Andrew our digital campaign designer on 0412 390 000 or via email andrew.matler@itwire.com

CONTACT US!

LAYER 1 ENCRIPTION A KEY TO CYBER-SECURITY SOLUTION

Security requirements such as confidentiality, integrity and authentication have become mandatory in most industries.

Data encryption methods previously used only by military and intelligence services have become common practice in all data transfer networks across all platforms, in all industries where information is sensitive and vital (financial and government institutions, critical infrastructure, data centres, and service providers).

Get the full details on Layer-1 encryption solutions straight from PacketLight’s optical networks experts.

This white paper titled, “When 1% of the Light Equals 100% of the Information” is a must read for anyone within the fiber optics, cybersecurity or related industry sectors.

To access click Download here.

DOWNLOAD!

Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments