In February 2023, the AER published FTI’s report recommending reforms for the AER to consider undertaking to simplify the retail market regulatory to reduce the costs on retailers while ensuring consumer outcomes are improved or maintained. We also published an open letter to stakeholders setting out the action we intend to take in response to FTI’s findings and recommendations, including how we will engage with stakeholders to progress next steps.

In considering how to respond to FTI’s findings, we have taken into account the number of other stakeholder consultation processes currently on foot. We have also considered the potential for interaction with broader reforms to the retail regulatory framework being considered as part of the ESB’s consumer energy resources (CER) implementation plan to integrate CER and flexible demand. In particular, the AER is undertaking a review of the energy consumer protections for future energy services.

In response to one of FTI's recommendations, on 25 January 2023 we wrote to Energy Ministers requesting that they consider amending the National Energy Retail Law (NERL) to remove section 23(3)(b), which requires retailers to publish any variation of standing offer prices in a newspaper.

We would like to thank stakeholders who engaged with FTI and provided views on how the retail regulatory framework could be simplified to reduce the cost to serve. If stakeholders have any questions about any issues raised in the letter or want to provide feedback, please contact AERPolicyaer [dot] gov [dot] au (AERPolicy[at]aer[dot]gov[dot]au).

We engaged FTI Consulting to review the national retail energy regulatory framework, to identify opportunities to simplify or remove regulations that could reduce retailers’ costs to serve while ensuring consumer outcomes are improved or maintained.

In preparing its report, FTI consulted with retailers, consumer representatives and other stakeholders.