Delays in energy market reform will see Queenslanders with
Transcription
Delays in energy market reform will see Queenslanders with
Media release 28 April 2015 Delays in energy market reform will see Queenslanders with less choice Cameron O’Reilly, Chief Executive of the Energy Retailers Association of Australia (ERAA) has said that today’s announcement by Palaszczuk Government to delay the implementation of retail price deregulation in South East Queensland is a disappointing one. “The decision to delay market monitoring from the middle of 2015 by 12 months will give consumers less choice of retailers and energy products during that time”, Mr O’Reilly said. “A competitive retail market is the best way to ensure downward pressure on electricity prices. The retail energy industry is highly competitive and competition for consumers will always be the most effective way to deliver better outcomes for the community. “The ERAA is happy to work with the Palaszczuk Government and the Productivity Commission to ensure they understand the benefits of a deregulated retail energy market,” Mr O’Reilly said. “Regulating electricity prices has not protected consumers in the past. When prices were regulated under the previous administrations, Queensland residents saw unprecedented price hikes in their energy bills,” Mr O’Reilly said. “Around 85-90 per cent of electricity bills are determined by the wholesale cost of electricity and network charges as well as green schemes which include solar feed-in tariffs. These increasing costs have to be passed through by retailers,” Mr O’Reilly said. “Having monitored rather than regulated retail prices will encourage more retailers to enter the south-east Queensland market and compete for customers by discounting and offering a wider range of energy products,” he said. “Since the Victorian market moved to price monitoring in 2009 and South Australia in February 2013, their households have seen new retailers enter the market, a wider array of products offered and a growth in the market share of smaller retailers. These markets were deregulated under Labor Governments. The NSW Government has recently followed this example by deregulating in 2014. “The Australian Energy Market Commission (AEMC) recently found that around 70 per cent households in South East Queensland have already chosen a market offer where the price is offered by the retailer and not set by the regulator. “This means that when given choice, Australians tend to embrace the right to switch energy companies and get a better deal to suit their needs and lifestyle. Already most south-east Queensland consumers have chosen to enter into market contracts with energy retailers rather than stay on regulated tariffs,” Mr O’Reilly said. The National Energy Customer Framework (NECF) will still be implemented in Queensland from 1 July 2015. The NECF is overseen by the Australian Energy Regulator (AER) ensures consumers have a comprehensive array of protections such as energy hardship plans and access to a nationwide energy comparator service to help households understand and compare energy use and offers. This free, independent service is available at www.energymadeeasy.gov.au and allows consumers to compare all electricity and gas offers in their area. We look forward to working further with the Queensland Government and the new Productivity Commission to ensure greater choice and competition for Queensland consumers in the future," Mr O’Reilly said. Media contact Alex Fraser 0413 557 527 Energy Retailers Association of Australia Suite 3, Level 5, 189 Kent Street, SYDNEY NSW 2000 T (02) 8241 1800 W www.eraa.com.au