Competition Increases In Victoria Energy Market

Competition Increases In Victoria Energy Market

Victoria Minister for Energy & Resources Michael O’Brien

Victoria Leads The World In Electricity Switching

Victor P Taffa

Minister for Energy and Resources Michael O’Brien has welcomed the Utility Customer Switching Research Project (UCSRP) by global energy think tank VaasaETT, which shows that Victoria has one of the most Competitive Energy Markets in the world.

The Report, which examined 33 Worldwide Electricity and Gas Markets over 2009/2010, found that Victoria outstrips Europe and parts of the USA in customers switching between energy retailers.

“This report shows that Victorians are savvy when it comes to switching to find a better deal on Electricity and Gas.” Mr. O’Brien said.

“It also shows the value of opening up the Victorian Energy Market to competition a process that was started by the breakup of the SEC monopoly more than a decade ago.”

 

“Better still, the UCSRP indicates the willingness of Victorians to switch energy providers for a better deal is set to continue.”

The ESC recently reported: “Just by switching from a standing offer to a market offer, with discounts and bonuses, (consumers) can potentially save around 10 %.”

(Energy Retailers Comparative Performance Report – Pricing Victoria 2009-10, Dec 2010, Page vi)

“Shopping around can save people a lot of money.” Mr. O’Brien said.

Victoria was the first and so far the only jurisdiction to be graded as ‘super hot’ by the report.

While the grading requires that the level of customer switching has been over 20 % for at least three years, in Victoria it has been more than 25 %.

In the Gas Market alone, switching rates have reached 30 %.

The report says: “Australia, and in particular Victoria, once again led the world in electricity  customer switching, increasing to record levels and establishing itself as the example for others to follow.”

Victoria leads all states in Australia as well as major markets in Europe and the US.

‘Hot’ jurisdictions included New Zealand, Queensland, Great Britain and Ireland. Countries such as Germany and Denmark were in the active market category, while France, Italy and the US city of New York were ‘cool active markets’ where activity was between 1 % and 3 %.