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ACCC to look into power retailers


Source: Shepparton News

The head of the consumer watchdog has suggested that news of its review of electricity retailers’ profits could possibly trigger lower prices.

‘‘We find that simply looking at an industry can have an effect on that industry,’’ Australian Competition and Consumer Commission chair Rod Sims said.

‘‘The fact that people know we are watching can have an effect.’’

The ACCC is preparing to send out compulsory information notices to electricity companies after being ordered by the Turnbull Government to review retail power prices.

The notices will be used to figure out why electricity prices have almost doubled across Australia in the past decade.

Retailers’ profit margins will be investigated as will their costs structures including network, wholesale and renewable energy scheme costs.

The watchdog will release an initial report within six months with early findings, but it will be given until June 30 next year to complete the review.