The Federal Government has introduced legislation today to prevent energy companies from appealing Australian Energy Regulator (AER) decisions.
Federal Energy Minister Josh Frydenberg said the new legislation would remove the ability of regulated energy network companies to game the system at the expense of consumers.
“Network costs make up to 50 per cent of the household bill making this an important reform which can make a real difference to consumer bills,” he said.
“Since it was introduced in 2008, the regime has seen consumers pay $6.5 billion more in energy bills than would have been the case if the AER’s decisions had been upheld.
“Review decisions have only ever resulted in increased revenues for energy businesses and higher bills for consumers.”
To support the action, the government is providing an additional $67.4 million in funding to the Australian Energy Regulator to stop companies overturning rulings.