Big stick laws on energy won’t deliver savings, says Grattan Institute
The “big stick” Treasurer Josh Frydenberg is waving at electricity companies won’t help with prices, independent researchers say.
SA News
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THE “big stick” laws proposed by the Federal Government to bring the electricity market to heel won’t significantly reduce power prices, independent research group the Grattan Institute says.
“Australians want cheaper power, and they welcome governments taking on the big power companies to deliver that result,” Grattan Institute director Tony Wood said.
“But poorly considered government intervention risks making things worse rather than better. Lowering prices ultimately requires private investment; a ‘company bashing’ approach may well prove counter-productive.”
Mr Wood’s comments were made as Grattan lodged a submission to a Senate committee inquiry into the laws.
Treasurer Josh Frydenberg has introduced the Bill saying it will “strengthen competition in the market and put downward pressure on electricity prices”.
The Bill creates three new types of misconduct – failing to pass through cost savings, gaming the market and withholding financial hedge contracts – with penalties including fines.
“The Bill focuses on issues that are not obviously driving high prices, or problems for which there are better solutions,” Mr Wood said.