Electricity represents a fundamental input to both industry and households. Ensuring that the appropriate frameworks and incentives are in place so that Australia has competitive electricity markets is a critical element underpinning Australia’s future prosperity.
Electricity prices should reflect the efficient costs of providing electricity to end-users. Prices should not be artificially held below efficient costs as this can result in under-investment, which can exacerbate price outcomes in the longer term.
In particular, retail price regulation and/or government intervention should not be utilised to artificially hold electricity prices below their efficient levels.
Submission to the Senate Select Committee on Electricity Prices