CEC welcomes Productivity Commission report

The Clean Energy Council (CEC) has welcomed the recently released Electricity Network Regulation Frameworks report, saying it is “heading in the right direction with its recommendations on making the electricity market more consumer-oriented”.

“The Electricity Network Regulation Frameworks report reiterated the fact that the spiralling costs of electricity networks - the ‘poles and wires’ - have driven the huge increases in electricity prices over recent years,” said CEC Chief Executive David Green.

Green said the report correctly highlighted that 25% of retail power bills goes towards ensuring peak demand - for just a few days each year - can be met.

“We welcome the Productivity Commission’s view that the best way to manage peak demand is to put more control in the hands of the consumer,” Green said. “We agree with the report’s recommendations that reforms are now urgently needed, including the effective introduction of smart meters, appropriate time-based pricing for critical peak periods and the phased removal of retail price regulation alongside suitable consumer safeguards.”

The suggested reforms could reward consumers for using less power during peak times and may reduce network costs, Green said.

“The more control we can give consumers in deciding when and how to use energy and from what sources - including their own, such as domestic solar - the quicker Australia’s transition to a cleaner and more efficient energy system, which is good news for everyone.”