Throughout 2025, the energy sector continued to present a broad range of competition and consumer law issues. In December, the ACCC reported that households that have been on the same electricity plan for more than three years are paying on average $221 per year more than customers on new plans. Amid rising electricity costs, an increasing number of consumers are investing in rooftop solar and battery storage systems, supported by Government subsidies. The ACCC reported that Australian households with rooftop solar and a home battery have (on average) an electricity bill that is 40% lower than households that take energy solely from the grid. This bill reduction does not take into account any upfront purchase cost paid for these systems. With the growing uptake of these assets, the ACCC has foreshadowed the need for enhanced consumer safeguards for customers purchasing rooftop solar/battery assets and entering into new energy service arrangements (e.g. for virtual power plants). 

Market overviews 

Electricity 

Despite increasing electricity costs, Government rebates continue to assist customers to reduce their bills. The ACCC has reported that residential solar customers consistently have lower electricity bills than non-solar customers. The opportunity to lower electricity costs, along with new government-backed incentives (for example, the Australian Government’s Cheaper Home Batteries Program), has seen growing demand for solar systems and home batteries. In light of this further demand, the ACCC has warned that the sales practices of solar/battery suppliers and electricity retailers will be scrutinised for compliance with Australia’s consumer laws. ACCC Commissioner, Anna Brakey stated, 

“The ACCC will be watching carefully and actively monitoring consumer complaints. We will hold solar and battery installers, retailers and suppliers accountable to ensure they comply with Australia’s consumer laws.”

Gas 

The cost of gas in Australia continued to fluctuate throughout 2025, primarily due to the predicted shortfalls in gas production in Australia, rising LNG export costs and regulatory/policy uncertainty. The ACCC has reported that gas supply on the east coast is set to improve in FY26 due to a production surplus of between 2 and 24 petajoules. However, whether this surplus will actually improve domestic gas supply relies on LNG producers deciding to supply their uncontracted gas domestically, and it will not necessarily result in more affordable gas. The ACCC found that whilst regulatory measures such as the Gas Market Code (which regulates conduct of gas producers to ensure adequate domestic gas supply at reasonable prices and on reasonable terms) may have contributed some gas to the domestic market, these measures have not delivered a significant improvement for gas users overall. 

In relation to gas retailing, a review by the ACCC of gas retailer behaviour found that the selling practices (for example, short offer validity periods and insufficient information on charges and terms and conditions) are not meeting the standards expected of an efficient retail market. ACCC Commissioner Anna Brakey stated that “retailing is expected to become more challenging given projected supply shortfalls, infrastructure constraints, the energy transition, and regulatory and policy uncertainty’. 

Key enforcement activity 

Diamond Energy 

Misleading pricing claims in breach of the Electricity Retail Code

In June 2025, the ACCC issued 3 infringement notices to electricity retailer Diamond Energy Pty Ltd (Diamond Energy) for allegedly breaching the Electricity Retail Code. The ACCC alleged (and Diamond Energy admitted, via a court enforceable undertaking) that, when it notified over 12,000 customers of price changes to their electricity plans, it failed to send them mandatory electricity pricing information. Diamond Energy also admitted that it failed to include certain mandatory information on its website, including the ‘lowest possible price’ (if a customer achieves all conditional discounts) for 44 of its plans. Diamond Energy paid $46,950 in penalties and agreed to implement a Competition and Consumer Law compliance program.

Australian Gas Networks Limited 

Alleged misleading environmental claims 

The ACCC has commenced Federal Court proceedings against gas distributor Australian Gas Networks Limited (AGNL), alleging that it made false and misleading representations in advertisements run during its ‘Love Gas’ advertising campaign in 2022 and 2023. The ACCC alleges that AGNL’s representations that the gas it distributes will be renewable within the next 10 years were false and misleading, because it is not yet economically sustainable to supply renewable gas at a viable price to consumers. Accordingly, the ACCC alleges that the advertisements overstated the likelihood that AGNL would overcome significant technical and economic barriers to distribute renewable gas to households within a generation. The ACCC originally commenced the proceedings by way of a Concise Statement; however, the Court subsequently ordered the parties to each file formal pleadings. The trial is likely to be heard in Sydney in 2027. 

 “There are limits to what the gas policy measures can achieve on their own if the underlying causes of inadequate supply and ineffective competition are not addressed”

ACCC Commissioner, Anna Brakey, 1 October 2025

Qteq 

Oil and gas company engages in cartel conduct

In April 2025, the Federal Court found that Qteq Pty Ltd, a supplier of mining equipment and technology services in the oil and gas industries, and its executive chairman, Mr Simon Ashton, engaged in cartel conduct by making six attempts either to enter into, or to induce a competitor to enter into, contracts, arrangements or understandings containing cartel provisions. The alleged ‘attempts’ were aimed at reducing or precluding competition by allocating customers, structuring tender bids, sharing the market, and entering into non-compete agreements.

In October 2025, the Federal Court heard the respective parties’ arguments regarding appropriate penalties and other relief. The Court has reserved its judgment. 

Assessment against priorities 

In 2025, the ACCC’s key enforcement priorities for essential services were essentially a continuation of its ongoing priorities over the last few years, being:

1. the promotion of competition in the electricity and gas markets;
    
2. misleading pricing and claims by energy retailers, ensuring that service plans, and pricing claims are clear, accurate and deliver the value represented to customers; and
    
3. consumer, fair trading and other competition concerns with a focus on environmental claims and “greenwashing”.

The ACCC’s 3 main enforcement activities in the essential services space in 2025 (which we summarise below) each related to one of the priorities listed above, meaning that the ACCC had some success in 2025 in achieving its enforcement priorities in this area. 

Looking ahead 

In late December, the Australian Government released key findings and recommendations from its Gas Market Review, which include (among other things) the need for significant reform of gas market regulation in Australia. In this context, we anticipate the ACCC will maintain a central role in regulating market behaviour to promote transparency and a reliable domestic gas supply, all whilst seeking to preserve market efficiencies. 

In addition, we might see:

• Amid rising power prices and cost-of-living challenges, consumer investment in rooftop solar and battery assets continuing to increase.
   
• As upward pressure on wholesale and retail energy prices persists, the ACCC maintaining close oversight of energy retailers, including active engagement on their pricing strategies and retail market practices.
   
• Likely further inquiries into long-term electricity subscriptions and misrepresentations of plan benefits, following the Government’s Better Bills campaign.
   
• Action on greenwashing and emerging energy products: with solar, batteries, EV charging and virtual power plants proliferating, the ACCC’s interest in misleading environmental claims and opaque business models will intensify.
   
• Depending on the response of the Government, implementation of recommendations from the Government’s Gas Market Review. We may see the ACCC involved in the development and enforcement of new domestic supply mandates and transparency measures. The regulator can also be expected to challenge misleading claims by gas suppliers and facilitate better code compliance.
   
• The ACCC may look to test competition law boundaries in energy transition contexts (for example, network access disputes, exclusivity arrangements in contracts for renewable generators and collective landholder agreements).
   
• New consumer guides on negotiating energy contracts, comparison websites and complaint pathways; energy sector seminars and collaboration with the Australian Energy Regulator and state regulators.