The Victorian Government has announced a bipartisan review into the state’s electricity and gas markets to determine how energy markets are delivering competitive benefits to consumers.
Victoria’s energy market is the most competitive in Australia with more than 25 electricity retailers and 10 gas retailers.
However, research shows that consumers lack confidence when comparing and understanding pricing offers, and too few are shopping around for the best deal.
The review will consider:
- Barriers that stop consumers from obtaining better offers
- Whether action is required to improve retail energy markets in Victoria
- Ways to assist everyday consumers to obtain the benefits of a competitive market
Minister for Energy, Environment and Climate Change, Lily D’Ambrosio, said, “We’re putting people first by investigating how the energy markets are working to deliver the benefits of competition to consumers.
“While Victorians enjoy the lowest prices in the country, reports indicate that retailers are also reaping the highest profits compared to other states and territories.
“The review will also look at whether energy retailers are using the impending closure of Hazelwood as an excuse to increase prices.”
According to analysis from the Labor Government’s independent price comparator Victorian Energy Compare, nine out of every 10 users can save money by switching energy offers, and seven out of every 10 users are able to save $220 or more on electricity alone.
Despite the savings available, nine per cent of residential electricity consumers and 11 per cent of residential gas consumers in Victoria remain on more expensive standing offers.
The review will be led by former Victorian MPs John Thwaites and Terry Mulder.