Deregulating NSW’s electricity market has improved competitiveness
Initial reports highlight product and service innovations.
Since the deregulation of NSW electricity prices two years ago, competition, price discounts and other benefits have increased, according to the latest research report.
The findings were drawn from the Independent Pricing and Regulatory Tribunal's (IPART) draft report on the performance and competitiveness of the NSW retail electricity market in 2015-16.
NSW's retail price regulations for electricity were removed from 1 July 2014 for residential and small business customers.
IPART chairman Dr Peter Boxall says in the years following deregulation there has been a notable rise in product and service innovations, providing customers added control over their usage and bills.
"Typical residential customers can save between $250 and $445 per annum and typical small business customers can save between $460 and $850 per annum by switching from their retailer's standing offer to their best market offer," Dr Boxall said.
It's unfortunate then that many Australians lack the energy to find the best deals available.
The draft report found no significant barriers for smaller retailers entering the market.
Six new retailers joined the NSW market in the last 12 months, validating the tribunal's findings.
IPART's report notes residential price increases by retailers of around 7% to 15% from July 2016 reflect changes in supply costs for smaller-scale customers and rises in wholesale pricing.
A final report will be submitted to the government by the end of November 2016.
Australian's ability to keep the lights on has been explicitly linked to financial proficiency, especially for residents of rural NSW.