ACCC Sets Path To Cut Small Business Power Prices

Summary —

Businesses that manufacture and supply innovative dental products could benefit by a 24% to 26% reduction in their electricity costs if recommendations from an Australian Government inquiry into electricity pricing are adopted.

Key Issues For The Dental Industry —

The Australian Competition and Consumer Commission (ACCC) has published a report following its review of the retail electricity market which began in March 2017.  The report, published on 11 July 2018, follows fifteen months of consultation and investigation. It found that businesses have suffered from a serious electricity affordability problem over the past decade due to a lack of competition in the sector and a poorly designed regulatory framework.

The ACCC’s findings are consistent with the evidence provided by the Australian Dental Industry Association (ADIA) last year.  ADIA’s representations reflected advice provided to the ACCC inquiry by the Australian Chamber of Commerce and Industry (AusChamber).

To remedy the problems raised in the report, the ACCC has made fifty-six recommendations that, if implemented, would cut electricity prices for businesses by between 24% to 26%.  The report can be downloaded via the link below:

Australian Government Download ― ■. ACCC Retail Electricity Pricing Report [PDF] *

Recent editions of the ADIA Dental Industry Business Conditions Survey have identified rising electricity prices as a factor affecting the commercial sustainability of businesses that manufacture and supply dental products.

The ACCC’s findings are consistent with the evidence provided by the Australian Dental Industry Association (ADIA) last year.  ADIA’s representations reflected advice provided to the same inquiry by the Australian Chamber of Commerce and Industry (AusChamber).

To remedy the problems raised in the report, the ACCC has made fifty-six recommendations that, if implemented, would cut electricity prices for businesses by between 24% and 26%.

While the Australian Government’s National Energy Guarantee (NEG), announced in October 2017, will see the introduction of a reliability target for electricity supply, the NEG did not contain strong provisions targeted at reducing retail electricity prices for businesses.  For businesses in the dental industry, the ACCC’s recommendations do focus on electricity price reductions.

The ACCC has advised that for its recommendations to be successfully adopted, they will require commitment from a range of stakeholders.   It is in this context that ADIA and AusChamber will continue to support and advocate for the implementation of these recommendations as they will have the practical outcome of cutting electricity costs for businesses to help them grow sustainably and create jobs.

Member Engagement —

ADIA provides leadership, strategy, advocacy, and support. Our members set our agenda, fund our activities, and directly benefit from the results. With respect to the Association’s work to ensure that the initiatives within the Australian Government’s energy policy support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-TCPC Trade & Commercial Policy Committee.  Regular briefings are provided to the quarterly series of ADIA State Branch Briefings.

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government’s energy policy supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at policy@adia.org.au or by telephone on 1300 943 094.

Currency Of Information & Disclaimer —

This update was issued on 13 July 2018 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.

Article Credit: ADIA – https://www.adia.org.au/