Media Contact
Carl Kitchen 0401 691 342
Aug 20 2018

Energy industry concerned by policy shift

Re-regulation of electricity prices and aggressive market interventions are not the long-term answer to high energy prices, the energy industry said today.

The Australian Energy Council’s Chief Executive, Sarah McNamara, said “today’s announcement by the Federal Government has left the most critical policy, the National Energy Guarantee, in limbo.  

“The NEG and policy stability remain the long-term solution to bringing down prices.

“Recent high power prices are driven by increased wholesale prices.  That’s because we’ve seen more than 5000MW of power stations close since 2012 and no like-for-like replacements.

“Replacement investment demands bipartisan policy and the lack of it remains the biggest drag on the energy market.  A national climate and energy policy would mean that the government doesn’t need to risk taxpayer funds to support new generators.

“Greater monitoring of power prices by the regulator is welcome.  It will simply highlight that energy companies are, and have been, acting appropriately,” she said.

“But retail price caps and other interventions are trying to treat the symptoms and not the cause.  This is policy with no consultation. We agree with the Australian Energy Market Commission’s assessment that re-regulation is not warranted.

“Re-regulation has the very real potential to damage competition and confidence.  It is extremely difficult for any regulator to set a default price accurately.  If it is set too low it will push energy companies out of the market.  If it is set too high it will mean consumers are paying more than they should.”

Ms McNamara said increasing the ACCC’s powers to allow divestment of private assets was not supported by the ACCC’s own report.

About the Australian Energy Council

The Council represents 21 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.

Related News

News

AEMO’s future plan reflects profound energy shift

The peak body for generators and retailers, the Australian Energy Council, said the market operator's Integrated System Plan (ISP) highlights the profound disruption occurring in the grid.

Jun 30 2022
News

AEC says the lifting of market suspension is the right move

The peak body for power generators and retailers, the Australian Energy Council says the lifting of the suspension of the National Electricity Market is a welcome announcement.

Jun 22 2022
News

AEC supports work on capacity mechanism

The peak body for power generators and retailers, the Australian Energy Council says it supports the Energy Security Board's work on a capacity mechanism.

Jun 20 2022
GET IN TOUCH
Do you have a question or comment for AEC?

Send an email with your question or comment, and include your name and a short message and we'll get back to you shortly.

Call Us
+61 (3) 9205 3100