AEC report shows consumer benefits from a reference price

Advantages of a Reference Bill as Compared to a Default Market Offer

The Australian Energy Daily has published this report on a report by Oakley Greenwood that was commissioned by the Australian Energy Council. The report assessed the relative merits of the two measures that the Commonwealth government has asked the AER to implement: a default market offer and a reference bill.

The Oakley Greenwood report, authored by Executive Director, Lance Hoch and Senior Consultant, Rohan Harris, concludes that implementation of the reference bill on its own would provide greater benefit than the implementation of both measures together.

More specifically, the report concludes that the introduction of an easy to understand reference bill in combination with the increasing ability of comparison websites to use individual customer billing data to assess available offers – rather than the re-regulation of retail prices – is the best means for reducing the transaction costs and confusion that many customers experience in today’s retail electricity market, and enhancing the longer-term efficiency and innovation benefits available from competition.

Read the OGW report here.

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