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Jun 22, 2011

Game on: energy regulators take on electricity networks

The Australian Energy Regulator has publicly conceded what has been known by many but rarely admitted -- that Australian consumers are paying way more than they need to for their network and electricity distribution costs, writes Giles Parkinson.

The Australian Energy Regulator has publicly conceded what has been known by many but rarely admitted — that Australian consumers are paying way more than they need to for their network and electricity distribution costs.

In an important speech in Melbourne on Monday, the AER chairman Andrew Reeve said he would be pushing for changes to the rules that effectively allowed the network operators to game the system. He said they were putting forward inflated estimates of required capital expenditure, and under the current regulations there was little the AER could do about it.

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3 comments

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3 thoughts on “Game on: energy regulators take on electricity networks

  1. gapot

    The government seems to be looking after the shareholders of these companies and in the case of state owned generators, taking the consumers for a ride by raising the price of power. This is a very clever way to up the income of government through the dividend paid to the government and trying to say that its due to the carbon tax. I always thought that government were there to protect the public not the price gougers.

  2. ggm

    Odd that the one thing we want: underground power distribution in flood/typhoon prone areas, is always denied on the grounds of ‘too much expense’

  3. The_roth

    As usual it’s consumer that pays and pays and pays…..

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