The Australian Competition and Consumer Commission has issued a draft determination of amendments to the National Electricity Code to facilitate the introduction of retail competition to all electricity consumers.
Retail competition allows electricity consumers to choose their electricity suppliers and has been phased in progressively by each state participating in the National Electricity Market, commencing with the largest electricity consumers in the mid 1990s. The final phased introduction of retail competition commenced on 1 January 2001 in NSW and Victoria and will eventually allow all customers, including households, to choose their electricity retailer.
The Code changes for retail competition:
- establish the principles and framework to allow retail level metering data to be used in the current wholesale electricity market
- allow the details of metering arrangements to be determined by the individual state governments
- allow retail competition to occur on the basis of either existing meters or time-of-use ('smart') meters
"The introduction of retail competition will enable all electricity consumers to benefit from the upstream reforms in the National Electricity Market, such as structural separation of competitive and monopoly facilities, and effective regulation of those monopoly facilities", ACCC Energy Commissioner, Mr Rod Shogren, said today. "However, the benefits cannot be passed on unless the rules being developed in each state are consistent, transparent and genuinely enable retailers to enter new markets.
"While these code changes will provide a broad framework that enables the introduction of full retail competition, the details are a matter for state governments to work out in a consultative process with consumer groups, industry participants, regulators and, importantly, other state governments", Mr Shogren said.
"Furthermore, the renewed focus on the National Electricity Market, arising from international events, should create an environment in which all players recognise the need to contribute to the development of a nationally consistent set of rules for all aspects of energy reform, not just retail competition".