Federal Court handed powers to force energy companies to sell assets
The Federal Court rather than the Treasurer will be handed powers to force badly behaved energy companies to sell assets in a major change to the Morrison government’s “big stick”.
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The Federal Court rather than the Treasurer will be handed powers to force badly behaved energy companies to sell assets in a major change to the Morrison government’s “big stick”.
Treasurer Josh Frydenberg made the change in a bid to dispel industry concerns the extraordinary powers would be used as a political weapon.
Energy Minister Angus Taylor used the threat of the new policy to demand energy retailers cut power prices from January 1.
Under the revised proposal the ACCC would need to recommend divestiture, the Treasurer would consider that and if satisfied the action was required the case would be referred to the Federal Court.
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The big stick will enshrine in law the demand that energy companies pass on cost reductions to customers.
If they don’t then they will face penalties such as temporary price regulation and divestiture.
The Daily Telegraph has confirmed the revised proposal was supported by Liberal backbenchers and passed the Coalition party room this morning paving the way for it to be put to parliament.
A group including the Australian Chamber of Commerce and Industry, Australian Energy Council, Australian Petroleum Production & Exploration Association and the Business Council of Australia spoke out against the government’s plan.
Opposition treasury spokesman Chris Bowen labelled the government’s policy “ridiculous” and a “Venezuelan-style intervention”.
“They are pathologically incapable of delivering the country an energy policy,” he said.