May 25, 2018
Synergy data advantage leaves small solar providers in the dark
The McGowan Government is allowing state-owned energy corporation Synergy to abuse its market position and drive smaller solar contractors out of the industry, according to Shadow Minister for Small Business Libby Mettam.
Ms Mettam said Synergy’s exclusive access to the database of all residential electricity customers, by virtue of its position as the Government’s monopoly electricity provider, gave it competitive advantage which small businesses could not compete with.
“There was an understanding the utility would operate within the principles of competitive neutrality but this is clearly not happening and it’s creating an unfair market that is seeing small independent operators pull out altogether,” Ms Mettam said.
“Because Synergy has a monopoly to buy and sell all solar energy generated on residential premises, all customers must register with the utility before they can install a solar or battery package system.
“Synergy is using its exclusive access to that database to calculate and target potential solar customers which is a breach of State and Commonwealth Competitive Neutrality policies.”
Ms Mettam said this created a situation where contractors were forced to send potential clients to their biggest competitor for approval of their purchase before they could proceed.
“This is an extremely unjust practice which gives Synergy a clear opportunity to poach clients, stifling competition in an already cut-throat market,” Ms Mettam said.
“Once competition in the marketplace is reduced, the inevitable consequence is an increase in price to consumers.
“Industry representatives have reported many small contractors have been forced to put staff off and shut up shop because they simply can’t compete with Synergy.
“This was never the intent and I call on the McGowan Government to address this abuse of power before more small businesses are forced out of the market.”
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