Aug 13 2017

Energy Price Re-regulation Fails to Address Key Issue

A proposal to re-regulate energy prices in Victoria would not solve the causes of higher energy prices and would not protect households or taxpayers from rising costs, the energy industry said today.

The Australian Energy Council’s General Manager Retail, Sarah McNamara, said, “recent price increases were the result of sustained national policy uncertainty, government interference and the resulting closure of old, large power stations.

“Deregulation has not driven up power prices. Deregulation commenced in 2002 in Victoria. The sharp increase in prices we have seen over the past 12 months is because of the reduction in firm supply in Victoria.

“We are concerned that re-regulation will not contain the cost pressures in the electricity market and will lead to less competition in Victoria,” Ms McNamara said.

“It would reduce the flexibility needed to encourage the new energy competitors of the 21st century and would end up making decarbonisation of our energy supply more expensive.”

Ms McNamara said the industry is committed to working with government to help customers find the best energy outcomes for them and to assist vulnerable customers with their bills.

“We are already working with the Federal Government to improve the way we notify customers about the deals they are on and to help them find more competitive offers. We also look forward to working with the Victorian Government.

“This report represents a good opportunity to review the way we engage with customers in hardship programs to make sure they are getting the best deal for their circumstances.”

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.

Media contact             Carl Kitchen                0401 691 342

Related News

News

Further power bill relief on the horizon: Independent report

An independent report has predicted power bills will continue to fall as new generation capacity enters the National Electricity Market.

Dec 21 2020
News

Industry pandemic response recognised

The Australian Energy Council has welcomed recognition of the assistance energy retailers have provided to customers impacted by COVID-19.

Nov 30 2020
News

Energy retailers continue to provide support

Energy retailers are continuing to provide support to households and small businesses impacted by the COVID-19 pandemic, the Australian Energy Council said today.

Oct 30 2020
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