Aussie energy retailers may face government intervention on prices

Bloomberg

Australia’s energy retailers face further government intervention in the market if they don’t move to lower power prices for consumers after a drop in wholesale charges, according to Energy Minister Josh Frydenberg.
Wholesale charges have fallen by about 30 percent from last year and that should start to flow to customers, Frydenberg said on Sky News. While the companies are “on notice,” the government will await a report from the Australian Competition and Consu- mer Commission later this month before deciding if more intervention is required and in what form.
“We need to see prices come down more,” Fr-ydenberg said. “Prices have moved, but certainly it’s not enough. We want to see prices come down more and we’re confident that will be the case.” Energy ministers from Australia’s six states and two territories met last week as the federal government seeks an agreement by August on its contentious National Energy Guarantee, which aims to lower electricity prices and require generators to guarantee reliable supply and limit emissions. The nation, one of the world’s biggest coal and gas exporters, has been mired in an energy crisis that has pushed up local power prices and cast doubt on the reliability of its grid.