AEMC Review of Effectiveness of Competition in the Electricity and Gas Retail Markets
ATA argued that the process of obtaining a retail contract for the grid-connection of small renewable energy systems in South Australia needs greater certainty. Further, ATA expressed skepticism at the view that customer awareness and churn are strong indicators of market effectiveness, particularly as the Commission itself has indicated that customer churn has largely been in response to direct marketing by retailers as consumers believe energy to be a “low involvement commodity” and are “unlikely to actively seek out a market offer.” Contrary to the Commission’s view, ATA believes that a customer who has not fully investigated potential energy offers would not be in a position to know whether they have experienced the full benefit from a switching decision.
Click here to see ATA’s submission.
