It’s part of the government’s plan to ensure Australian households get a fair deal on energy, and aims to both drive down energy prices and strengthen supply.
In a statement released to the media, Federal Treasurer Josh Frydenberg and Energy Minister Angus Taylor said the new law, which was passed six months ago, will “ensure reductions in wholesale costs are passed on to customers, while penalties will apply for anti-competitive behaviour or moves to manipulate electricity prices”.
For too long, electricity companies have, in the words of the Australian Competition and Consumer Commission (ACCC), “played a major role in poor outcomes for consumers”, the ministers said.
Referred to as the “big stick” legislation, Mr Frydenberg and Mr Taylor said the new law comes at an important time, with an increasing number of households experiencing hardship due to COVID-19.
The government has revealed that the ACCC will be responsible for enforcing the legislation, with a graduated range of penalties available to it for the punishment of misconduct.
Where more “egregious” breaches occur, the Treasurer will also be able to issue contracting orders to require electricity companies to offer electricity financial contracts to third parties, while the Federal Court will be able to make orders related to wholesale market misconduct.
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