Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Productivity, Competition, Charities and Treasury, the Hon Dr Andrew Leigh MP)Chapter 6: Extending Operation of the Prohibiting Energy Market Misconduct Provisions
Outline of chapter
6.1 Schedule 6 to the Bill extends the operation of Part XICA of the CCA for another five years, from 1 January 2026 to 1 January 2031.
Context of amendments
6.2 In 2018, the ACCC conducted an inquiry into the supply of retail electricity and the competitiveness of retail electricity prices. Following the inquiry's recommendations, the former Government passed through Parliament the PEMM Act.
6.3 The PEMM Act amended the CCA to introduce Part XICA, a legislative framework consisting of prohibitions and remedies tailored to conduct in electricity markets. Specifically, it contains three prohibitions in relation to retail, contract and electricity spot markets.
6.4 Item 15 of Schedule 1 to the PEMM Act required the Treasurer to establish a review into the effectiveness of the PEMM Act amendments in promoting competition in energy markets and ensuring cost-savings are passed on to consumers. This review was established by the Treasurer and conducted by DCCEEW during 2024 and 2025.
6.5 The DCCEEW's review found that the PEMM Act amendments are, on balance, likely to have had a positive impact in constraining behaviour of market participants and protecting consumers. It recommended that Part XICA of the CCA be retained until the national electricity market has reached a state of relative stability, to allow for the alignment of the PEMM Act with the future state of the electricity market.
Detailed explanation of new law
6.6 Section 153B of the CCA currently provides that Part XICA, and any other provision of the CCA to the extent that it relates to Part XICA, will cease to be in force on 1 January 2026.
6.7 Schedule 6 to the Bill amends section 153B to extend the operation of Part XICA and any relevant provisions for another five years. The amended section 153B will provide that Part XICA, and any other provision of the CCA to the extent that it relates to Part XICA, will cease to be in force on 1 January 2031.
6.8 Schedule 6 to the Bill also amends section 153A of the CCA, which outlines the operation of Part XICA, to reflect the new cessation date.
Commencement
6.9 Schedule 6 to the Bill commences the day after Royal Assent.