Spark of hope on big bills

CONSUMERS could save hundreds of dollars a year on power under a plan to overhaul Australia’s electricity market to be revealed today.

Power companies would have to make it easier for customers to compare discounts and simpler to switch to cheaper offers under a blueprint by Australia’s competition watchdog.

Wholesalers and retailers would have to improve competition and slash network charges while the regulator would be given greater powers to target price gouging as part of the proposed overhaul.

In a report to be released today, the Australian Competition and Consumer Commission says the electricity market is “unacceptable and unsustainable” and calls for an overhaul to push down prices.

Warning households are suffering unnecessary costs, the ACCC says savings of hundreds of dollars a year could be made if these are removed.

The report proposes a series of reforms to the market in a bid to “bring down prices and restore consumer confidence and Australia’s competitive advantage”. “Significant gains can be made for consumers and businesses,” the report says.

In moves to make prices simpler and fairer, providers would have to speed up transfers for people who switch to cheaper rates and “pay on time” discounts would be reviewed to prevent them being used to penalise late payments.

Prime Minister Malcolm Turnbull will discuss the findings in a speech in Brisbane today. He will latch on to a recommendation backing his National Energy Guarantee (NEG) as he tries to stave off a split within his government over support for renewables versus coal-fired power.