The interim response announced the immediate steps the Government is taking on key Review recommendations. This includes further analysis of recommendations 1 and 2 on the application and scope of the regulated ‘Basic Service Offer’ and revocation of standing offer contracts, and support of recommendations 3 to 11.

This recognises immediate measures adopted by Victoria’s three largest electricity retailers, AGL, EnergyAustralia and Origin Energy, to reduce electricity costs in 2018 for more than 285,000 Victorian residential customers on standing offer contracts.

The Government has also already progressed a number of the review’s 11 recommendations in full or in part. For example, work has begun to promote consumer awareness of the competitive market and the Government’s price comparator website Victorian Energy Compare. The Government has also committed to rolling out the Home Energy Brokerage Service and the Home Energy Assist program, funding more than 3,300 Victorian homes to become more energy efficient.

The Government acknowledges further analysis on the remaining recommendations and their implementation is required. Consultation with stakeholders will help inform the Government’s final response, which is anticipated to be delivered in mid-2018.

Retail Market Review Interim Response (PDF, 340.3 KB)
Retail Market Review Interim Response (DOCX, 126.9 KB)

Consultation paper

DELWP released a Consultation Paper (PDF, 392.2 KB), (DOCX, 145.6 KB) to accompany the interim response. The purpose of the consultation paper was to seek stakeholder feedback on the specific review recommendations relating to:

  • the introduction of a Basic Service Offer (Recommendation 1) and abolition of standing offers (Recommendation 2); and
  • market contract periods, practices and variations (Recommendation 4).

DELWP also welcomed feedback on other review recommendations.

Retail Market Review Consultation Paper (PDF, 392.2 KB)
Retail Market Review Consultation Paper (DOCX, 145.6 KB)

Submissions

DELWP received 26 submissions to the Consultation Paper. Submissions were generally treated as public documents and published to this website, unless the author asked that all or part of their submission be treated as confidential. The submissions will help inform the Government’s final response to the Review.

Background

In November 2016, the Victorian Government announced an independent bipartisan review of Victoria's electricity and gas retail markets, to examine the operation of the Victorian electricity and gas retail markets and provide options to improve outcomes for consumers.

The Independent Review panel’s final report (PDF, 2.6 MB) was handed down to the Minister on Sunday 13 August 2017. The findings of the independent panel highlight that Victorian consumers are not gaining the benefits of a competitive retail market. The review recommended a suite of reforms and initiatives, with 29 recommendations in total to place the consumers back on a level playing field.

Review of electricity and gas retail markets in Victoria

The independent review panel consisted of John Thwaites, who served as Deputy Premier of Victoria from 1999 to 2007, Terry Mulder who served as Minister for Public Transport and Roads from 2010 to 2014, and Patricia Faulkner AO, former Secretary of the Victorian Department of Human Services and Director of Consumer Affairs.

Terms of Reference for the review (PDF, 176.7 KB)
Terms of Reference for the review (Accessible) (DOCX, 126.3 KB)

The review panel released a discussion paper on some of the key issues and questions concerning the operation of Victoria's electricity and gas retail markets.

Discussion Paper - Review of Electricity and Gas Retail Markets in Victoria (PDF, 467.6 KB)
Discussion Paper - Review of Electricity and Gas Retail Markets in Victoria (Accessible) (DOCX, 311.9 KB)

24 formal submissions were received to the Discussion Paper. Below is the complete list of submissions received by the secretariat. Submitters have agreed that they are entitled to deal with the intellectual property rights (including copyright) of all material (including any third parties) in their comments and have obtained the necessary consent(s) from any and all third parties owning the copyright for such dealings.

Consultant reports

The review commissioned the following reports as part of the investigation into the retail energy market.

Carbon Market Economics

The retail electricity market for households and small businesses in Victoria, Analysis of offers and bills (PDF, 4.4 MB)

Victorian retail gas market for residential and small businesses customers, Description and analysis of commonly available offers (PDF, 768.0 KB)

Commonwealth Scientific and Industrial Research Organisation (CSIRO)

Exploring the drivers and barriers of consumer engagement in the Victorian retail energy market (PDF, 603.5 KB)

Jacobs

Retail Price Review: A report for the [Victorian] Department of Environment, Land, Water and Planning (PDF, 5.4 MB)

KPMG

Energy retail markets: An international review (PDF, 3.5 MB)

Newgate research

Consumer research for the Victorian Government’s review of the state’s energy market, (PDF, 1.4 MB)