Reconciling Energy Prices and Social Policy

The regulation of retail electricity prices has been a highly contentious energy policy issue in Australia, with industry arguing for its removal on the one hand and welfare groups arguing for its retention on the other. Yet rarely is the most basic question asked: are ‘market contracts’ delivering benefits to customers? The authors contrast regulated standing supply offers in NSW, which are set at long-run economic levels, with market contracts across households of differing consumption levels.