The Australian Government has indicated to the AER that it will adopt the Australian Competition and Consumer Commission’s (ACCC) recommendations 30, 49, 32 and 50 in its retail electricity price inquiry (REPI). Specifically, the Government has asked the AER to develop by 30 April 2019:
- maximum prices for the default market offer to apply from 1 July 2019 for customers not subject to state-based price regulation.
- a mechanism for determining a reference bill amount for each network distribution region, from which headline discounts can be calculated.
Default market offer (recommendations 30 and 49)
On 9 November 2018 we published a position paper setting out our process timing and initial views on our approach to determine the default market offer prices.
The default market offer prices will also serve as a basis for calculating the reference bill for residential customers and small businesses.
Reference bill (recommendations 32 and 50)
Development of the reference bill will run in parallel with development of the default market offer prices. Practically, it may require us to make amendments to the Retail Pricing Information Guidelines (RPIG), determine a consumption benchmark for use in the reference bill for SMEs and make any necessary changes to our Energy Made Easy website to ensure consistency of price presentation across the market.
Invitation for submissions
We released a position paper on 9 November 2018 and invited written submissions. Submissions closed on 7 December 2018.
We held a public forum on our DMO position paper in Sydney on 5 December 2018.
|AER Position paper - Default market offer prices - 9 November 2018 ( PDF 1.22 MB )||AER|
|Treasurer and Minister for Energy - Letter to AER - 23 October 2018 ( PDF 145.29 KB )||Minister for Energy|