2012 review of electricity market performance
Our focus on long-term benefits to consumers puts the spotlight on industry incentives to innovate and invest in ensuring a reliable supply of electricity and to reduce the costs associated with supplying electricity.
Increased competition in the retail market
Competition in the retail market should mean that consumers can choose the supplier that gives them the level of service they require at the lowest price. A workably competitive retail market will enable innovation and facilitate entry into the market.
This year, we’ve seen an increasingly competitive retail sector - as measured by the level of consumer switching and the resulting changes in market share.
Wholesale market improvements
In the wholesale market, we review how the hedge market is evolving into the preferred platform for retailers and generators to manage spot price risk. A competitive hedge market lowers the risk of operating as a retailer, which facilitates entry into the market.