Energy prices change as electricity markets fluctuate. Understanding how energy deregulation impacts your bills can help you make an informed decision when choosing an Australian energy provider (retailer). Electricity deregulation allows Australian energy companies to compete for customers, resulting in great electricity and natural gas plans.
What is Energy Deregulation?
Deregulation is when governments allow private companies to enter the market and set their own electricity price structure. Regulated markets don’t impact energy supply but they do enable residential customers to compare energy plans and select a provider that suits their household needs. Energy deregulation can also improve natural gas and renewable energy prices for consumers, as governments offer incentives for reducing fossil fuel emissions.
Deregulation means energy retailers and utility companies can buy energy at wholesale prices, create various plan options, and offer energy to customers at competitive prices.
Benefits of Energy Deregulation
Competitive Energy Prices – In deregulated markets, lower prices attract more customers. You can often find a better rate for gas and electricity by comparing plans.
A Variety of Energy Plans – With more private providers in the deregulated energy market, consumers have more options, including renewable energy choices that help reduce greenhouse emissions.
Solar Feed-In Tariffs – For homeowners with solar panels, deregulated markets allow you to compare different solar companies. Feed-in tariffs provide credits for excess solar power returned to the grid.
Flexible Energy Plans – Deregulated electricity markets allow users to find plans with rates that fit their usage habits.
Energy Deregulation in Australia
Australia is a huge country with various deregulation laws in place. Electricity transmission lines and gas networks cover large swathes of the country, requiring huge power generation and supply networks. Energy deregulation varies across Australian states, with some regions fully deregulated and others only partially. Here’s a quick breakdown:
Fully Deregulated States: New South Wales (NSW), Victoria (VIC), South Australia (SA), Australian Capital Territory (ACT), and parts of Queensland (South-East QLD).
Partially Deregulated Areas: Tasmania (with limited provider options), Western Australia (WA) – where the gas market is deregulated in Perth, but electricity largely remains regulated.
Regulated Regions: Northern Territory (NT) and regions outside of WA’s South-West Interconnected System (SWIS).
Consumer Protections in a Deregulated Energy Market
The Australian Government has established safeguards to protect customers. Key electricity industry regulatory bodies include:
- Australian Energy Regulator (AER)
- Australian Competition and Consumer Commission (ACCC)
- Essential Services Commission (VIC)
- Australian Energy Market Commission (AEMC)
These Government-regulated organisations monitor electricity generation, energy production, pricing, energy policy, practices, and fair-trade regulations. Each state has an energy ombudsman to assist with disputes and conflict resolution at no cost to customers.
Price Caps on Electricity Bills
The Australian Government introduced the Default Market Offer (DMO) in NSW, SA, and South-East QLD. This allows customers to compare energy plan pricing relative to a standard. In VIC, the Victorian Default Offer (VDO) provides similar protections. These caps apply to the electric grid, so customers don’t face unexpectedly high costs on default plans. GoSwitch compares the plans of energy retailers against the default offer, making comparisons clearer and helping you spot the best deal.
Why choose GoSwitch?
The energy industry electricity market is highly competitive. Energy prices change when new energy deals are introduced, and competition between energy suppliers heats up. The cost of electricity supply is also affected by the electricity supply from power plants to distributors and retailers in your location. With so much to consider and a lot on offer, it’s worth consulting the experts using the GoSwitch energy price comparison service. Advantages include:
- 100% free. We get a commission from our energy partners. The savings are yours to keep.
- GoSwitch compares leading electricity providers all in one place.
- Evaluate energy plans, hourly rates, supply and usage charges, and special offers.
- GoSwitch energy price comparisons happen in real time.
- Take minutes instead of days to cut through the complexity and find a better electricity deal.
- Find the best deal tailored to you in Melbourne, Victoria, and other Australian regions.
- Make a smooth transition to a new energy provider and a better deal.
- Compare electricity deals, natural gas, solar power, internet, and private health insurance.
* You have the advantage of choosing between providers in a deregulated market.
Ready to Save on Energy?
The power to choose is yours in a deregulated energy market. Explore energy options with GoSwitch to find a money-saving plan that suits your lifestyle. Enter your postcode and a few details for a GoSwitch energy price comparison search and start saving today!
Popular Article
