This submission responds to the Consultation Paper published by the Australian Energy Market Commission (AEMC) as part of its examination of a rule change request lodged by the NSW Independent Pricing and Regulatory Tribunal (IPART). IPART has proposed that the timeline for when electricity networks lodge their annual pricing proposals, and the speed with which these proposals are approved should be moved forward, to give retailers more time to set their own prices. IPART also proposes that there be a greater obligation on networks to consult with retailers and end users in setting those prices. PIAC gave conditional support to the rule change proposal, noting that it is vital that the Australian Energy Regulator (AER) has sufficient time to properly scrutinise network pricing proposals. PIAC also supported the requirement for increased consultation by networks. Finally, PIAC noted that if IPART’s proposals were adopted, this would reduce the risk and difficulty faced by retailers in setting their prices. This should, in turn, flow through to lower prices for residential consumers.
