The Victorian government has requested the Essential Services Commission to give effect to recommendation 8A from the Independent review into the electricity and gas retail markets in Victoria, which requires the commission to monitor and report on the competitiveness and efficiency of the Victorian retail energy market.

This Commission is looking for competition in the market that delivers positive long-term outcomes for Victorian consumers – a market with effective competition. This recognises that competition is a means to an end rather than an end in itself and measuring the competitiveness and efficiency of the market can indicate what effect the market is having on customer outcomes. This is particularly important given that energy is an essential service where the overwhelming majority of customers cannot exit or find a fully substituted product.