Review of structure conduct and performance in the wholesale electricity market

Upcoming Open Closed Decision

View submissions Submissions closed 22 December 2021

Consultation

We conducted a market monitoring review of structure conduct and performance in the wholesale electricity market that focused on competition in the wholesale market from January 2019 until early 2021.

Our review used the structure, conduct and performance framework set out in our 2011 information paper: Industry and market monitoring: competition. From 27 October to 22 December 2021, we sought feedback on our methods and the content of the review.

At the same time, we consulted on a second paper, Inefficient price discrimination in the wholesale electricity market – Issues and options as the first step in responding to one of the issues we found in our review.

Our review found out that higher prices over the review period did not always match the relative supply and demand conditions. There was also some evidence that generators may have manipulated prices by manipulating levels of supply and demand. We also found little design of new renewable generation.

We have now followed up this initial review with a forward-looking assessment of what changes to market settings may be required. At the end of 2022, we consulted on an issues paper that put forward a number of options for feedback.

Review papers

Review of structure conduct and performance in the wholesale electricity market - summary paper

In undertaking this review we used specific information from the four largest generator-retailers and information in the public domain. We also interviewed a number of market participants about investment issues.

27 October 2021