The ACCC is commencing a new inquiry into the supply of electricity in the National Electricity Market and is consulting on how it will undertake this role.

The ACCC has been tasked with monitoring and reporting on the supply of retail and wholesale electricity in Queensland, NSW, Victoria, South Australia, Tasmania, and the ACT, until 2025. It will have a focus on monitoring prices, profits and margins, including the effect of policy changes in the National Electricity Market.

The ACCC will report, at least every six months, on information it obtains from energy companies, including the prices customers are paying for electricity and the underlying factors for any significant price movements.

The ACCC will be looking to use existing sources of data, but, where necessary, will use its compulsory information gathering powers to obtain crucial information from retailers and other market participants. The ACCC will specifically be examining whether any wholesale cost savings are being passed through to customers.

In its July 2018 report on restoring electricity affordability and Australia’s competitive advantage, the ACCC made recommendations that would bring about increased competition and lower supply costs so as to reduce prices significantly for businesses and households. The ACCC has been asked to monitor the effects of policy changes, including those resulting from its July 2018 report recommendations.

This discussion paper for the inquiry is seeking submissions on three key areas:

• the analytical framework for this role, including our expectations of market outcomes and participant behaviour, and the measures we will use to monitor and analyse prices and behaviour
• how we will monitor the impact of policy developments
• the processes and timing for the collection of information, including what data we will require.

Submissions close 19 December 2018.