The Australian Energy Market Commission (AEMC) commissioned Oxera to consider how behavioural insights can be applied to retail energy markets in Australia, and in particular the competitive market indicators tracked by the AEMC. To that extent, this report provides recommendations for how behavioural economics could be incorporated into the AEMC’s analysis, although the specific analysis would require additional primary research, which is beyond the scope of this report.
Identifying the existence and scope of behavioural biases allows for a better understanding of the drivers of the competitive market indicators. We have looked at how behavioural economics influences the indicators used by the
AEMC. It is important to be aware that behavioural biases are hypotheses that need to be empirically tested with Australian consumers in relation to the retail energy market.