Energy retailers at risk due to nonpaying customers and higher costs during pandemic

THE GUARDIAN | The Covid-19 pandemic has increased the risk that multiple power retailers, or one very large player, could default during the crisis because of an increase in costs and nonpayments, the Australian Energy Market Commission says.

As well as the stark warning on the potential blow of the pandemic, the AEMC has also used the 2020 snapshot of competition in Australia’s energy sector to raise concerns that price regulation introduced by the Morrison and Andrews governments intended to reduce high power prices is, perversely, encouraging consumers not to shop around. The new report shows that switching rates have fallen by 5% to a three-year low of 19%.

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