Webinar: Unaffordable power - Why governments need to tackle monopoly network super profits
Unaffordable power - why governments need to tackle monopoly network super profits from Smart Energy Council on Vimeo.
Key Findings
Over 2014-2021, Australian consumers were charged $10 billion more for electricity network services than necessary to ensure a reliable service.
Weaknesses in the regulatory system have allowed these excessively high returns or “supernormal profits” in favour of network shareholders, diverting funds that could have been invested in Australia's necessary energy transition.
Correcting regulatory failure requires substantial reforms including changes to the National Electricity Law and Rules, monitoring and reporting on supernormal profits, improving consumer representation in regulatory processes and ensuring frameworks for future investment are efficient.
This is a recording of the IEEFA / Smart Energy Council webinar held on 1 December 2022 entitled "Unaffordable power - why governments need to tackle monopoly network super profits".
With the Australian government announcing it will take action to constrain gas companies’ ‘glut of greed’, it’s also time to tackle monopoly network super-profits and inflated prices to reduce electricity bills.
Coordinated government action is required to fix flaws in the current system for regulating monopoly electricity networks.
In doing so, power bills could be reduced a further $100 - $150 per customer per year for customers in ten of the twelve distribution networks in the national electricity market.
In this webinar, former New South Wales Treasury officer and IEEFA guest contributor Simon Orme covered:
- Findings of his recent IEEFA report on the impact of network regulation on power bills
- How networks have been able to set prices above costs to the tune of $800 - $1200 over an eight-year period
- How returns can’t be explained by efficient performance and incentives
- How supernormal profits have hindered Australia’s necessary energy transition
- Steps the government could take to fix the issue.
Hosted by Steve Blume, President, Smart Energy Council with speakers Simon Orme - Director, Tahu Consulting, Johanna Bowyer - Lead Research Analyst, Australian Electricity, IEEFA and Tristan Edis - Director of Analysis and Advisory, Green Energy Markets.
