The Turnbull Government has ordered the Australian Competition and Consumer Commission to review retail electricity prices, saying consumers need confidence in the market.
Electricity retailer behaviour, as well as contracts offered to consumers and business, will be scrutinised to ensure it is not just power companies benefiting from the National Electricity Market.
"The Turnbull government is determined to ensure Australians get a better deal for their energy," Mr Turnbull said in a joint statement with Treasurer Scott Morrison on Monday.
"A better deal in electricity is vital to keeping the lights on, delivering cheaper prices to families and businesses and sustaining jobs, particularly the thousands of jobs in our energy-intensive industries."
Energy Minister Josh Frydenberg said the government hoped the inquiry would lead to reduced power bills for households and businesses across the country.
"We want to get more information into the public realm and whatever reforms follow from that will be in the best interest of the consumer," Minister Frydenberg told the ABC on Monday.
The Turnbull Government has given the watchdog until June 30 next year to undertake the review, given it will be data-intensive and of a complex nature, however the ACCC will need to produce a paper within six months on its preliminary findings into the strategies and pricing behaviours of key electricity retailers.
The industry watchdog will work with the Australian Energy Regulator and the Australian Energy Market Commission in undertaking the inquiry.
The government said recent research by a number of organisations highlighted significant concern about the causes of recent electricity price increases on the east coast.
Concerns were flagged by the Australian Energy Market Commission, Energy Consumers Australia and the Grattan Institute, as well as in submissions to the COAG's review into energy markets, chaired by Alan Finkel.
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