Energy
Electricity

Monitoring the retail energy markets during 2017-18

Status
Consultation
Start Date
May 2018
End Date
Nov 2018
14
Days left for submissions
Deadline: 2 Nov 2018
Have your say
What

IPART has released its Draft Report on the performance and competitiveness of the retail electricity and gas markets in NSW for the most recent financial year.

This is our fourth annual monitoring report on the retail electricity market, but our first for retail gas market since gas prices were deregulated on 1 July 2017.

We have found that over the last year:

  • On average, we estimate that electricity prices for residential and business customers increased by 0.2% in July 2018 compared to prices in June 2018.  Gas prices for residential customers in the Jemena network increased by 0.2%, and prices for business customers increased by 1.6%.  For the country gas networks, prices fell on average by around 2% for both residential and business customers.
  • Around 19% of electricity and 14% of gas customers switched retailer, but 17% of electricity customers remain on relatively higher ‘standing offers’, and another 15% of customers are likely to be on market offers paying standing offer prices (because the benefit period has expired).
  • Three new electricity and three new gas retailers entered the markets, however, the pace at which small retailers has gained market share has been slow.
  • The NSW Government has introduced new measures to help customers engage in the market, including Service NSW assisting customers to find the best offer and to switch and new obligations on retailers to help rebate customers move to lower market offers.
  • Other measures to assist customers include Energy Made Easy website has recently been upgraded, changes to the Retail Pricing Information Guidelines, the AEMC rule change to require retailers to notify customers of price changes in advance. 
Why

IPART used to regulate retail prices for gas and electricity customers.  Retailers could offer different prices to customers, but customers who did not accept a “market offer” paid the regulated rates set by IPART.

However, now that prices are deregulated, IPART reviews the performance of the market each year to assess how competition is working under section 234A of the National Energy Retail Law (NSW)

As part of this review, the NSW Minister for Energy and Utilities asked us to report on:

  • electricity and gas price movements from July 2018, and whether any such changes reflect efficient costs in a competitive market, and
  • whether retailers are delivering acceptable levels of customer communication and service in their delivery of metering services.
Who

We are looking at outcomes for residential and small business customers in NSW

When

We must report to the Minister for Energy and Utilities by 30 November 2018.

What Next

We invite interested parties to make a submission to our Draft Report by Friday 2 November. We will then consider stakeholder submissions and conduct further analysis, before submitting our Final Report to the Minister.

Key Contact
Jessica Robinson
Email
02 9290 8405
Have Your Say
IPART routinely seeks public input into our reviews via submissions, public hearings, stakeholder workshops and community surveys.
View all reviews open for submissions