We have developed a framework for assessing the competitiveness and efficiency of the Victorian energy retail market.
Assessing the energy retail market's competitiveness and efficiency 2019
Public forum7 November 2019
Framework and approach paper17 December 2019
Submissions close30 March 2020
First report developedJuly-December 2020
First report releasedLate 2020
We have been asked by the Victorian Government to monitor and report on the competitiveness and efficiency of the Victorian energy retail market.
This project was initiated following the Victorian Government’s interim response to the recommendations made by the independent bipartisan review of electricity and gas retail markets in 2018.
What we are doing
In consultation with interested stakeholders and the public, we have developed a framework and approach to help assess whether the Victorian energy retail market is delivering good value to energy consumers.
It will help ensure that the Victorian energy retail market delivers benefits to consumers by providing value for money energy prices and great customer service.
We held a public forum on 7 November to hear from a broad range of experts including economists, energy experts, consumer advocates, industry, regulators, commentators and policy makers about their perspectives on this topic. See the resources tab for presentation materials from the forum.
Framework and approach paper
Our framework and approach paper it believes outlines the key reasons why reporting on the energy market is important.
Download the full framework and approach paper, or view an executive summary document.
Key facts about our framework and approach
We are looking for competition in the market that delivers positive long-term outcomes for Victorian consumers
Previous reviews have found that despite the number of energy companies operating in Victoria the energy retail market is not highly competitive or efficient.
We will begin monitoring the market in 2020
The first report will be released in 2020 and will focus on two major areas of concern: lack of genuine innovation and low levels of trust.
We have undertaken a consultation period to help enhance the framework and approach.
Consultation closed on 30 March 2020.
We will develop our first report later in 2020.
Related work in response to the retail market review
Framework and approach paper
Public forum - 7 November 2019
Agenda and background information
Papers prepared by our invited economists
Each economist prepared a paper on their views, which was be presented at the forum. We asked each economist to answer questions about
how they would undertake the task of assessing the competitiveness and efficiency of the Victorian energy retail market.
We asked each economist:
'Given the changes to the market that have resulted from the implementation of the recommendations from the Independent Review:
- What would you expect to observe if the Victorian energy market was operating competitively in terms of outcomes for household and business consumers?
- What is your view on the Victorian market’s performance and how does this compare to other markets?
- What sort of innovation would we hope to encourage in a competitive market?
- What measures would you use to undertake your assessment?'
These papers are the views of the authors and do not reflect the views of the commission.