ACCC releases second carbon monitoring report

The Australian Competition and Consumer Commission (ACCC) has provided the second carbon monitoring report to the Treasurer, the Hon Joe Hockey MP, detailing its monitoring activities for the June 2014 quarter. The commission has undertaken formal monitoring of the prices, costs and profits relating to the supply of regulated goods by corporations, and relating to the supply of goods by liable entities, to assess the general effect of the carbon tax scheme in Australia.

The ACCC is engaging with entities in relevant industries to understand how the carbon tax affected their prices, costs and profits, and the consequences of the carbon tax repeal. The report details industry assessments and the ACCC’s expectations as to how the carbon tax repeal will affect different industries.

The ACCC will be contacting firms which represented to consumers that their prices had increased due to the carbon tax to see that their prices now fall. The commission will also selectively monitor prices in a number of industries including transport and manufacturing, as well as following up complaints received from consumers.

“The ACCC expects that cost savings arising from the carbon tax repeal will be passed through to consumers,” said ACCC Chairman Rod Sims. “The information obtained by the ACCC in its monitoring role, as well as through the new carbon tax removal substantiation notices and statements, will be used to assess any failure by businesses to pass through all carbon tax cost savings to customers.”

“With the repeal of the carbon tax, the ACCC’s role shifts to an enforcement focus. We are confident that we have the base pricing information and the appropriate enforcement powers to do the job assigned to us by the government. We will be keeping a close eye on prices and where all cost savings are not passed through, or entities make false or misleading representations, the ACCC will use its enforcement powers.

“Suppliers of regulated goods will be the ACCC’s main focus, as the carbon tax had a significant effect on pricing of these products. The ACCC is pleased to see the early commitment of energy retailers to pass through cost savings quickly including backdating these savings to 1 July 2014.”

A copy of the report is available here.