To encourage effective competition and reduce the costs retailers incur to serve customers the AER has committed to considering if there are ways to improve the efficiency of the retail market regulatory framework. We have set out this priority in the AER’s Strategic Plan 2020-25 and in our consumer vulnerability strategy, Towards Energy Equity.
To commence actioning this priority, in early 2022, we engaged FTI Consulting (FTI) to review the national retail energy regulatory framework, to identify opportunities to simplify or remove regulations that could reduce retailers’ costs to serve while ensuring consumer outcomes are improved or maintained.
February 2023, the AER published the FTI Consulting report recommending reforms for the AER to undertake to simplify the retail market regulatory to reduce the costs on retailers while ensuring consumer outcomes are improved or maintained. We also published an open letter to stakeholders setting out the action we intend to take in response to FTI's findings and recommendations.