AEMC review of the effectiveness of competition in electricity and gas retail marketing in Victoria

The Australian Energy Marketing Commission is conducting a review of the effectiveness of competition in the Victorian electricity and gas markets. The NSW market will be reviewed in 2009, so PIAC wanted to put its concerns on record. Reflecting its narrow terms of reference, the draft review is heavily weighted towards industry rather than consumers, and therefore does not provide the opportunity for a balanced and comprehensive assessment of the effectiveness of competition in the Victorian energy market.In its submission to the draft review PIAC therefore recommended that future reviews give weight to economic, social and environmental criteria for assessing the effectiveness of competition; give weight to the economic costs and benefits of competition for consumers and industry; include research on the actual, as well as perceived, impacts of competition on consumers; and examine the potential impacts on consumers of further price deregulation.