1. www.eraa.com.au

2. About the Energy Retailers Association Peak body representing electricity and gas retailers in the national energy markets Members are mostly privately owned and vary in size Members are large, medium and niche retailers National coverage including WA Members have more than 10 million customers – more than 3 million gas customers Most customers are dual fuel though electricity is the predominant fuel

3. Our members

4. 2007 Australian energy market reform 2002 1995 1994 1990-1 Industry Commission inquiry National Competition Policy Review Committee - Hilmer Competition Policy Agreements Energy Markets Review - Parer Energy Reform Implementation Group - Scales Privatisation commenced 1995 …led to energy market reforms Price Deregulation (Victoria and South Australia) Australian Energy Market Commission Australian Energy Regulator Australian Energy Market Operator National Electricity Market National Energy Customer Framework (NECF) National Competition Policy Full Retail Contestability

5. The competitive framework in Australia Generation market Competitive market with few existing participants. New entrants encouraged by governments' renewable energy and other policies. Independently governed access arrangements to enable energy distributors to purchase supply on fair and equitable terms. Distribution market Natural monopoly market with several participants. New entrants restricted by government policy. Network tariffs regulated by government. Retail market Contestable market with multiple participants. New/existing entrants encouraged by price signals, government policy and market conditions. Customer service focus. Consumer protection laws apply. Retailers deliver CSOs like government funded rebates.

7. Regulatory situation Consumer benefits of energy price deregulation include: –product innovation –improved customer service and responsiveness –option to shop around for better offers –save on the standing price JurisdictionPathways to price deregulation VictoriaPrice monitoring 1 January 2009 South AustraliaPrice monitoring 1 February 2013 NSWSubject to AEMC review Three year price path set by IPART QueenslandOne year price path Recovery from tariff freeze

8. What does energy price deregulation look like? Price monitoring to local regulators –Victoria www.esc.vic.gov.au/www.esc.vic.gov.au/ –South Australia www.escosa.sa.gov.au/www.escosa.sa.gov.au/ Governments retain power to re-regulate Implementation of non-price consumer framework - NECF

9. Retailer market share Diagram from research undertaken by Deloitte Access Economics 2012

10. Breakdown of a typical electricity bill State of the Energy Market 2012

11. Electricity demand is falling Solar PV penetration Decentralised generation Solar hot water Energy efficiency Price elasticity of demand Commercial and industrial load Solar PV penetration

12. Smart meters – peak demand ERAA released five smart meter working papers examining key policy discussions: 1. The benefits of smart meters 2. Enabling a market-driven smart meter rollout 3. Competitive neutrality 4. Privacy of personal information 5. Third party and distributor framework