Submission: ICRC Retail Electricity Prices Investigation 2024-27 Issues Paper

ACTCOSS made a submission to the Independent Competition and Regulatory Commission (ICRC) Retail Electricity Prices Investigation 2024-27 Issues Paper. Our submission provides some background on the experiences of vulnerable consumers, including First Nations people’s experiences in the energy market. Our submission highlights how decreases in the spending power of low-income households due to the current cost of living crisis impact on their capacity to cope with increases in the cost of electricity. ACTCOSS would support calculation of retail electricity costs to maximise reduced costs to consumers while providing stability.

Recommendations:

1. The method for determining standing offer prices for the supply of electricity to small customers should take into account the current cost of living crisis as well as the unpredictable market environment caused by the ACT’s energy transition.
2. Any awareness or communication campaigns about electricity plans, concessions and support should be specifically designed to reach the target audience e.g. First Nations communities, those on low incomes or government support payments, older citizens, renters, or CALD communities.
3. Encourage competition in the ACT electricity market, including through greater transparency.
4. The standing offer price should apply to all retailers operating in the ACT.
5. The calculation of retail electricity costs should seek to maximise reduced costs to consumers while providing price stability.
6. The ICRC should ensure the approach used to calculate the components of retail electricity costs are appropriate for the anticipated energy system of 2027.