Government orders review into electricity prices

The government has ordered a review into electricity prices in a bid to curb rising costs across the east coast of Australia.

The Australian Competition and Consumer Commission (ACCC) has been given the authority to investigate power companies to ensure providers aren’t participating in anti-competitive behaviour or collusion.

Household electricity prices have jumped in recent years, with the Australian Energy Market Commission predicting they will continue to rise if current trends continue.

The ACCC investigation will look into power companies’ margins and profits to see if they are in line with costs and risks, reports the ABC.

The Government said retail electricity markets do not appear to be operating as effectively as they could.

“A better deal in electricity is vital to keeping the lights on, delivering cheaper prices to families and businesses and sustaining jobs, particularly the thousands of jobs in our energy intensive industries,” Prime Minister Malcolm Turnbull and Treasurer Scott Morrison said in a joint statement.

The ACCC will have until the end of financial year 2017 to complete its report, but will present preliminary findings within six months.

Electricity prices have been a significant factor in the rising cost of living across the country, with many families and pensioners falling bellow the poverty line in recent years.

Have you noticed your power bill creeping up? Do you think electricity should be cheaper across the board?