The consumer watchdog and energy regulator should be able to monitor retail, financial contract and wholesale energy markets to prevent anti-competitive behaviour, a Senate committee says.
The finding was part of the Senate economics committee's report, released on Monday, on the government's proposed 'big stick' legislation for energy companies.
The committee noted that the Australian Competition and Consumer Commission and Australian Energy Regulator need access to more information to halt market manipulation.
Such powers were spruiked by the ACCC in its review into how to reduce electricity prices
The draft 'big stick' laws include penalties and powers for the forced break-up of companies, which the government argues are needed to ensure power retailers and generators do not make decisions that deliberately jack up the price of electricity.
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Chair of the committee, Liberal senator Jane Hume says the bill should be passed, while Labor senators want the "rushed" proposal torn up.
"This bill has managed to unite both energy producers and energy users, concerned that this bill will likely have counterproductive outcomes and increase electricity prices in the long term," Senators Chris Ketter and Jenny McAllister said.
Greens senator Peter Whish-Wilson wants to amend the bill to effectively ban the government from underwriting new coal-fired power.
During the inquiry multiple stakeholders told the senators that the proposed legislation was an unprecedented government intervention into the market, an assertion rejected by the committee.
Prime Minister Scott Morrison has said the coalition will take the proposal to the campaign trail rather than attempt to pass the bill when parliament returns next month.
