More competition for NSW electricity consumers
According to the Independent Pricing and Regulatory Tribunal's (IPART) Final Report: Review of the performance and competitiveness of the retail electricity market in NSW (1.53 MB PDF), the removal of retail price regulation has meant more competition, more choice and downward pressure on electricity prices in NSW.
In April 2014, the NSW Government announced the removal of retail price regulation from the electricity market, which took effect on 1 July 2014.
On 1 July 2014, any customers who were not switched over to a market contract were automatically transferred to a 'transitional tariff'. The removal of retail price regulation has not changed access to energy rebates, protection laws or the quality of customers' electricity supply.
Since 1 July 2014, approximately 438,365 or 40 per cent of customers who were on the transitional tariff have moved to another electricity offer, while around 20 per cent of the state's 3.3 million electricity customers remain on the transitional tariff.
IPART's final report on deregulation found that in the first year of electricity price deregulation, the market continued to work effectively and that
- households could save up to $389 to $522 by switching to the lowest priced market offer
- changes in small business standing offers from June 2014 to June 2015 saw retail electricity prices also decline between $125 to $438.
IPART's report also found that the deregulation of retail electricity prices was a major reason for four new retailers entering the NSW market and for small retailers increasing their market share.
IPART will continue to play a role in monitoring the NSW electricity market and analysing competition indicators, and will report back to the Government for an initial three year period.
Households and small businesses are encouraged to shop around for a better deal by making a free comparison on the Australian Energy Regulator's Energy Made Easy website.
For further information visit our frequently asked questions page or call Service NSW on 13 77 88.