ACCC wants more players in energy market

The head of the consumer watchdog believes the cost of energy generation between fossil fuels and renewables is pretty much at parity.

Australian Competition and Consumer Commission chairman Rod Sims said with technological changes around the world, renewable energy is coming very close to fossil fuel energy in terms of cost.

"In certain cases, renewable energy can be cheaper," Mr Sims told a Senate hearing on Thursday.

"I still think affordability has much more to do with poles and wires and market power issues and retail issues."

He wants to see more generation into the system of whatever type, but preferably from new players to get a bit more competition.