Power companies are facing consistently strong pressure from consumers to keep prices down and that is unlikely to change for the next six to 12 months, an analyst believes.
Nachi Moghe, a senior equities analyst at Morningstar Research, says competition has risen over the past five years for several reasons.
He says the ability for customers to switch providers more frequently has made consumers more aware and they are shopping for cheaper electricity prices, and there is an over-capacity in the system putting downward pressure on prices.
At the same time, wholesale prices are also falling due to the high level of hydro inflows.
Mr Moghe says that is also keeping a lid on retail prices.
"Some companies are benefiting out of that and some companies are not. The companies that are benefiting, obviously, are the companies who have got high hydro production.
"That will reduce their costs of production as well and also will mean increased production because of high hydro inflows."
