Pruned energy big stick bill better, says Frydenberg
The Coalition’s watered down energy policy gives courts, not the treasurer, a final say on breaking up power giants.
Treasurer Josh Frydenberg has defended the government’s pruning of its “big stick” energy policy, saying the revised bill is stronger for it.
Labor was celebrating the Coalition being “humiliated” into switching plans for new government powers against electricity companies doing the wrong thing by consumers.
The different direction came about after internal concerns from the Coalition backbench.
But Mr Frydenberg said the legislation, which will be introduced this week, had benefited from debate and advice in the party room.
“This outcome is the result of consultation with colleagues, and more importantly, stakeholders and industry,” he told reporters in Canberra.
“This policy is actually better for the consultation.”
The laws will put in place financial penalties on electricity retailers and generators that engage in misconduct.
Misconduct will include such action as retailers failing to reasonably pass through cost savings to consumers and generators manipulating the spot market.
The Australian Competition and Consumer Commission will be able issue warning notices and will consult with the treasurer on other action. The divestiture powers already flagged by the government will remain in the legislation.
However, rather than giving Mr Frydenberg the final say on breaking up the energy giants, he will have to apply to the courts which will have the final say.
Shadow treasurer Chris Bowen earlier slammed the changes to the bill.
“This ridiculous policy, this Venezuelan-style intervention,this intervention in the economy which would chill investment, has collapsed under its own weight,” he said.
“Abbott-Turnbull-Morrison energy policy 27.0 has been destroyed by their own party.” Energy and business industry groups had spoken out against the original divestiture powers, warning they could blur the lines between parliament and the judiciary, and fall foul of the constitution.
Former prime minister Malcolm Turnbull said any divestment powers must have proper safeguards and occur only in circumstances where the ACCC’s efforts in protecting electricity customers had been unsuccessful.
“With great respect that is not a substitute for the national energy guarantee,” he said in Sydney today.
“Ensuring a competitive market and the protection of consumers is vital, but you also have to have the certainty of integratedclimate and energy policy so you get the investment.”
AAP
