New alliance forms against energy prices
A new alliance of business groups, consumer advocates and charities has formed to ‘fix a broken system’ that has seen electricity prices increase by over 50 per cent over the last five years.
The Australian Industry Group, Brotherhood of St Laurence, CHOICE and the Energy Efficiency Council have joined forces to produce a wide-ranging review of realistic options to reduce electricity prices. Respected energy consultancy Oakley Greenwood prepared this independent review,Policy options for maximising downward pressure on electricity prices, released this week.
The report calls for:
- A stronger system for regulating electricity networks, including giving the Australian Energy Regulator more powers and the resources to use them, and better incentives for efficient investment;
- A proposal to set minimum targets for distribution network companies to use demand-side activity to reduce spending on new peak-driven infrastructure;
- Ensuring that electricity users who reduce their demand for electricity during peak and ‘super peak’ periods can benefit through the wholesale market and energy efficiency schemes;
- A robust system for protecting consumers, particularly vulnerable consumers; and
- A stronger role for all consumers in the regulatory system, including a consumer advocacy body.
“Australian businesses were already paying more than they should for energy before the carbon price began, and were less competitive as a result. A smarter system can help all of us - business, households, and the electricity sector - get more for our money and deliver lower prices." AI Group’s CEO Innes Willox said.
The full report can be found here