Consumers will face even higher electricity prices if small retailers struggling with surging wholesale prices go to the wall and further damage competition, the competition watchdog warns.
To achieve this, the Australian Energy Regulator should have the flexibility to adjust the default offer in unforeseen circumstances outside of the annual price-setting decision, the ACCC says.market interventions in a bid to cut the price of gas and electricity.The government has floated a range of options including a gas and coal price cap to curb the raw costs of electricity, which is expected to be discussed at a national cabinet meeting on Friday.
r, and a further 30 per cent over the next two years to 2024 – combined with limited access to hedge contracts has left some retailers struggling to cope. ACCC Commissioner Anna Brakey said the report draws attention to the challenges facing smaller retailers “because we know if we lose retail competition everyone will pay more for electricity over the long term.”The ACCC’s analysis of retailers’ cost data shows that average retail margins have been declining since their peak in 2016-17.
In 2016-17, the average annual retail margin across the national electricity market per residential customer was $145 in inflation-adjusted terms.
National gas cap now, monetary policy can only do so much