Energy price wars

[boxy]

The ACT's smaller electricity retailers want the pricing watchdog to increase power prices to improve competition in the Canberra market.

The Independent Competition and Regulatory Commission is conducting its annual review into ACT electricity prices.

It has raised the idea of paying a so-called competition allowance to attract more electricity retailers to the Territory.

Canberra's second largest retailer, Energy Australia, says more incentives are needed to make it lucrative enough for new retailers to enter the market.

But the ACT Government remains opposed to an incentive subsidy being paid to power companies.

Energy Minister Simon Corbell says there is no evidence that would improve competition and believes the cost would be passed onto consumers.

Instead, he says, the small size of the market, high customer satisfaction and a well known local brand are the main barriers at the moment.

In its submission to the regulator, ActewAGL says having the ICRC determine price rises stifles competition.

It also wants permission to increase its retail profit margins from 5.4 per cent to 6 per cent this year.

Let's pay more for greater competition... like we did for 3rd party insurance

[Rorschach]

These people must think the rest of us are braindead.

[DaS Energy]

These people must think the rest of us are braindead.

Those people possibly don't know they are!