Archive - Improving the efficiency of prices in pivotal supplier situations
In 2012 we investigated several occasions, known as pivotal supplier situations, where generators had set high prices in locations where there was no competition from other generators. We held concerns this behaviour may continue or become widespread, resulting in reduced retail competition and a lack of confidence in the wholesale market – an outcome contrary to our goal to benefit the long-term interests of consumers.
As a result of our investigation, we amended the Code to require generators to meet a high standard of trading conduct when making offers. The new requirement promotes behaviour to ensure prices do not increase to inefficiently high levels when generators are pivotal.
Overview
| Date | Activity |
|---|---|
| 17 Jul 2014 | Outcome: Code amendment comes into force Read more |
| 4 Jun 2014 | Development: The Board approved an amendment to the Code. Read more |
| 4 Jun 2014 | Development: Decision paper published Read more |
| 11 Mar – 22 Apr 2014 | Consultation: Improving the efficiency of prices in pivotal supplier situations Read more |
| 24 Oct 2013 | Advisory Group: WAG recommendations paper Read more |
| 28 May – 09 Jul 2013 | Consultation: Pricing in a pivotal supplier situation Read more |
