ELECTRICITY price regulation will remain in the ACT for another two years despite the Australian Energy Market Commission’s recommendation to remove it.

The AEMC concluded their Review of the Effectiveness of Competition in the Electricity Retail Market in the ACT in March and made the recommendation to remove price regulation for small customers, such as households.

“The AEMC review accurately reflects some of the unique characteristics of the ACT electricity market, including its small size, dominance by a single retailer, relatively low prices and the high levels of customer satisfaction experienced by ACT electricity consumers and recommended the removal of price regulation for small customers, such as households,” Minister for the Environment and Sustainable Development Mr Corbell said.

“The ACT Government does not agree with the AEMC recommendation on price regulation that the transitional franchise tariff or TFT should be removed for small electricity customers, such as households.

“The AEMC, the ICRC and the Government have all concluded this will lead to an increase in average power prices. The Government does not support removal of price regulation if there is no benefit to consumers and has therefore decided to retain the TFT for a further two years.

“The effectiveness of the ACT’s existing price regulation is demonstrated by the fact that an average ACT household pays $1,538 each year for its power while an equivalent household in Queanbeyan pays $2,702, a difference of $1,164 per year.”