Electricity Market Review Phase 2
Information Paper: Barriers to Entry Project
Following Phase 1 of the Electricity Market Review, Cabinet approved the commencement of
Phase 2 of the Electricity Market Review including the detailed design of reforms (Stage 1) and,
subject to government approval, the implementation of reforms (Stage 2).
Project scope
The Barriers to Entry Project encompasses the implementation of reforms to reduce or remove
material market issues affecting the retail sector, which are considered barriers to effective
competition between service providers and consumer choice in the South West Interconnected
System.
Project objective
The objectives of the Barriers to Entry Project are to:
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Facilitate competitive access to wholesale supply so retailers can compete in supplying
customers;
Ensure energy related concession payment mechanisms do not prevent customers from
choosing preferred retailers and that retailers have equitable access to customers; and
Ensure that there are no undue regulatory barriers to adoption of new energy technologies
such as solar panels and battery storage and self-management customer power solutions.
Project activities
Access to competitive wholesale supply for retailers
Retailers need access to competitive wholesale supply so that they can compete effectively in
supplying customers. The project will address existing regulatory and policy settings to enable
access to competitive wholesale supply for retailers and ensure the appropriate market signals are
established to encourage long term private sector investment in generation capacity. These
activities will be undertaken in conjunction with other Electricity Market Review projects related to
competitive wholesale supply.
Concession payments and access to retail customers
The potential for effective competition and consumer choice will be greater if customers that are
eligible to receive energy-related concession payments are able to continue receiving the
concession payment regardless of their choice of retailer. The project will consider new concession
arrangements, including arrangements adopted by other jurisdictions when introducing retail
competition.
Project information sheet: Barriers to Entry Project
Emerging technologies
The project will investigate whether the existing regulatory and policy settings present any undue
barriers to emerging energy technologies, focusing on technical, financial and regulatory barriers to
the provision of innovative products and services by electricity retailers and others; grid connection
of distributed generation and storage technologies; and efficient investment in distributed
generation and storage technologies.
Project schedule
The timeline below outlines a generic schedule of activities related to the Barriers to Entry project.
Ultimate legislative and regulatory scheduling will depend on the schedules of Government and
Parliament.
How can I get more information?
Invitations to meetings and workshops will be sent through the Electricity Market Review mailing
list (please email [email protected] to join the list). Reports, consultation
information and other project updates will be posted to the Electricity Market Review website.
Stakeholders with specific enquiries related to this project are encouraged to contact Ashwin Raj,
Workstream Leader (6551 1047 or [email protected]) or Tristan Berentzen, Project
Lead (65511235 or [email protected]). Updates specific to the Barriers to Entry
Project will be posted to the Electricity Market Review website.
Department of Finance | Public Utilities Office