The competition regulator has warned energy retailers their profit margins are under scrutiny as AGL revealed a stunning leap in profits from gas sales that bolsters producers’ calls for them to be included in Labor’s price caps and market intervention.of more than $1 billion, AGL was forced to explain a 337 per cent gap between what it pays producers for its gas and how much it charges consumers.AGL bought gas in the six months ended December 31 at an average of $8.
“In the long run, the mandatory code will likely have the effect of increasing, not decreasing, wholesale gas prices,” it said. The ACCC is consulting on and working up options for the mandatory code of conduct. And even though the government’s gas market price cap did not apply to retail gas customers, the ACCC said it expected the cap to “drive down the wholesale cost of gas, and that retailers will pass on any savings on to consumers”.