A draft report released today recommended setting New South Wales on a course to reduce electricity bills and reform its energy market in the interests of all consumers, the Clean Energy Council said today.

The report from the Australian Energy Market Commission (AEMC) recommended that NSW removes retail electricity price caps to enable increased retail market participation and competition, paving the way for new entrants that could give consumers more opportunities to buy clean energy.

Clean Energy Council Chief Executive David Green said the draft report was an important first step towards NSW opening up to full retail competition in the state, which could in turn lead to lower electricity bills for households and businesses.

“As we’ve seen in Victoria, and more recently in South Australia, opening up markets to retail competition can benefit all consumers by providing access to a broader range of companies and products, ultimately leading to lower electricity prices,” Mr Green said.

“The recommended removal of price caps on the retail price of electricity will also encourage companies to innovate to attract customers, leading to better deals being available on the market,” he said.

Mr Green said that there was still a long process ahead for NSW to achieve price deregulation, and that more work was now needed to ensure the market delivered real consumer choice.

“Energy prices in Australia are unfortunately likely to continue increasing, with global influences having an impact, as well as the impending domestic gas price hike,” Mr Green said.

“If NSW were to adopt the draft recommendation to remove price caps, this could go a long way towards using the competitive pressure of the market to enable consumers to get a good deal, and also keep the state moving along the road towards a cleaner energy future.

“We would encourage the NSW Government to seriously consider this draft recommendation ahead of the AEMC’s final report on competition in NSW energy markets being delivered in September 2013,” Mr Green said.

Source: www.cleanenergycouncil.org.au/