ACCC examining NSW energy companies pushing up price of household electricity bills

THE consumer watchdog is looking into what is really pushing the price of household electricity through the roof.

THE Australian Competition and Consumer Commission is examining how the concentration of power in only a few energy companies in NSW may be pushing up the price of household electricity bills.

As the COAG Energy Council yesterday discussed recommendations from the Finkel review, ACCC chairman Rod Sims said Australia had “major problems” with energy affordability that was “causing a lot of harm to households”.

Prices over the last 10 years have gone up by 60 to 90 per cent above inflation.

“We’ve seen prices over the last 10 years go up by 60 to 90 per cent above inflation,” he said. “We’ve had some overly-generous green schemes where the costs have been smeared to other consumers, and of course we’ve got very high gas prices which has pushed up electricity prices.”

But Mr Sims said one area he was examining was whether there was spot price manipulation in NSW as a result of only a few generators operating.

“In NSW, the ACCC opposed the NSW Government selling Macquarie Generation in Liddell to AGL,” he said.

“Unfortunately, that went ahead and that made the market more concentrated and more vertically integrated, and so that does mean some of the players have market power, and that does increase electricity prices. So we’re certainly going to look at that and see what can be done.”

The ACCC is examining NSW energy companies pushing up the price of household electricity bills. Picture: Steve Tanner

The Turnbull Government secured agreement from the state and territories at the COAG Energy Council yesterday to pass 49 of the 50 recommendations from the Finkel review including requiring coal — excluding the highly contentious Clean Energy Target.

Major changes to help stabilise the system include requirements for backup storage for wind and solar, rules that stipulate coal-fired power stations won’t be able to close overnight, a new energy security board and lifting of gas exploration bans.

“The Turnbull Government recognises the urgency of the situation as lower electricity prices are the important to a stronger community and a healthier economy,” said Energy Minister Josh Frydenberg yesterday.