South Australia delivers major energy reforms

South Australia has moved to a more competitive market by deregulating retail energy prices and implementing the National Energy Customer Framework (NECF).

The Minister for Resources and Energy, Martin Ferguson AM MP, welcomed the South Australian Government’s announcement and said the decision represents a major step forward in the energy market reform agenda agreed to on 7 December 2012 by the Council of Australian Governments.

“South Australia’s move to deregulate retail energy prices will promote even greater competition and innovation in its electricity and gas markets,” Minister Ferguson said.

“As seen in Victoria, retail price deregulation provides opportunities for new and existing retailers to offer consumers not only competitive prices, but also innovative energy supply arrangements so they can better understand and manage their energy use and costs.

“Greater competition brings many benefits but also comes with the need for strong customer protections. The Australian Government, with the states and territories, developed the NECF to harmonise and strengthen protections for energy consumers.

“The NECF places an obligation on energy retailers to offer flexible payment options for customers facing financial hardship and requires retailers to provide customers with clearer contracts.

“By implementing the NECF, South Australians are also able to access the Australian Energy Regulator’s price comparator site, energymadeeasy.gov.au. Customers can now instantly compare offers from gas and electricity providers, making it easy for South Australians to decide if they are on the right contract.

“Price deregulation accompanied by strong protections is essential to empowering households and businesses with the ability to seek the best possible deal on their energy supply.

“I encourage other states to take note of South Australia’s major achievements as they work towards their own energy market reforms.”