A leading Australian energy lawyer says big power providers are facing increased scrutiny from the competition watchdog amid concerns a shake-out of the industry could lead to price gouging.
where prices this week rose 50-fold and prompted warnings that some manufacturing businesses would be wiped out.
"Smaller… retailers that are trying to offer cheaper prices to consumers will probably go to the wall, which will mean there'll be a major consolidation in the market," Mr O'Callaghan said."If I was to put a bet on it I'd say – not to suggest any wrongdoing of course by these organisations – that the ACCC will be looking very closely at the conduct of all participants at the moment.
According to chief executive Luke Blincoe, consumers would have a short window of opportunity to find another provider before ReAmped was forced to jack up prices as much as 100 per cent from July. Energy lawyer Mr O'Callaghan noted that unlike bigger providers, smaller retailers such as ReAmped did not have their own generation plants and were therefore heavily exposed to wholesale prices.
"A lot of the challenger retailers that were there to bring price control to a competitive market… will start getting flush out because the wholesale price will increase.Events unprecedented: Industry
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Perfect storm: How Australia’s energy crisis ignitedHigh electricity and gas prices are the tip of the iceberg for the Albanese Labor government, which is facing a full-blown energy problem in its first few weeks in office.
Read more »
Government not ready to 'pull trigger' on responses to energy supply shortageTreasurer Jim Chalmers is waiting to conclude conversations with relevant ministers before pulling the 'trigger' on responses to sure up gas and energy supplies in Australia.
Read more »
The one thing that matters for investors in a world of crisesOPINION: As the rising inflation, energy crises and labour shortages rage, US fund manager Rob Almeida is looking to something decidedly old school.
Read more »
Labor eyes gas reserve to steady pricesThe Labor government are looking to gas reserves in order to address supply options for the national energy market – as Australians battle record-high power prices.
Read more »
Manufacturers caught in energy crunch are ‘stressed and traumatised’Sanctions on Russia, outages in Australia’s ageing coal-fired power stations, and a blast of cold weather are fuelling a sharp rise in east coast energy spot market prices.
Read more »
Manufacturers warn thousands of jobs at risk unless gas held back from exportLarge gas users fear spiking energy prices could put them out of business, as Energy Minister Chris Bowen calls emergency meetings.
Read more »