More electricity retailers likely to fail, resulting in less competition and higher prices

Energy ministers have discussed a possible exodus of electricity retailers – and what that might mean for market confidence. Photograph: Lisa Maree Williams/Getty Images

Energy markets face further turbulence within weeks as more retailers decline to take on new customers and others exit the industry, a situation the New South Wales energy minister, Matt Kean, warns will render a decade of increasing competition “null and void”.

Since 24 May three retailers have failed, requiring the Australian Energy Regulator to activate its “retailer of last resort” provision that transfers customers to backup suppliers. That provision could soon be used a lot more.