On 16 December 2009 the MCE formally requested the AEMC to assess the effectiveness of retail competition in the electricity retail market in the ACT. The review will be conducted in accordance with the MCE's Request for Advice, and Revised Statement of Approach (21 December 2009). It will be completed by 31 December 2010. If the AEMC finds effective competition it must provide advice on ways to phase out retail price regulation. If competition is found to be not effective its advice must identify ways to promote the growth of effective competition.

Consistent with the Australian Energy Market Agreement (AEMA), the AEMC is required to assess and publicly report on the effectiveness of retail competition in electricity and gas retail markets in each jurisdiction (except Western Australia). The ACT retail competition review will only consider electricity as natural gas is not subject to retail price regulation.

The AEMC completed reviews of the Victorian and South Australian retail markets in 2007 and 2008 respectively. For each review the AEMC found competition to be effective for small electricity and gas customers and subsequently recommended that retail price regulation be discontinued.