PIAC responded to the Australian Competition and Consumer Commission’s (ACCC) consultation on a guideline (the Guideline) for the Prohibiting Energy Market Misconduct Bill (the Bill).
We do not consider the Prohibiting Energy Market Misconduct Bill is the most effective means of putting downwards pressure on energy prices. We do, however, support the monitoring and oversight powers the Bill will grant the Commission and consider this may encourage competitive conduct in the wholesale and retail energy markets.
We outline reasons we believe the Bill will not have a material effect on energy prices or misconduct.
We recommend preferred measures to put downwards pressure on energy prices including the introduction of a demand response mechanism into the wholesale energy market, government underwriting of required new transmission infrastructure, the development of a cost-based Default Market Offer similar to the Victorian Default Offer, and the implementation of the Integrated System Plan.
