Power chiefs told by PM to cut prices

The nation’s electricity industry chiefs will be hauled in by Malcolm Turnbull for the second time in three weeks.

Prime Minister Malcolm Turnbull is seeking to regain the political initiative this week. Picture Kym Smith

The nation’s electricity industry chiefs will be hauled in by Malcolm Turnbull for the second time in three weeks following an audit that revealed more than a million households are still paying the highest price rates ­imposed by energy retailers.

With the government seeking to regain the political initiative this week by switching the focus back to a key cost-of-living issue, the Prime Minister will ramp up pressure on the eight biggest electricity retailers to ensure all households are offered access to cheaper pricing deals.

The Australian has learned that an audit by the Australian Competition & Consumer Commission, provided to the government, has estimated that roughly one million households, or more than 10 per cent of all dwellings, were locked into the highest electricity rates, which were often up to 27 per cent more than the average cheaper plans.

In a meeting scheduled for Wednesday in Sydney, Mr Turnbull will require them to outline how they will help more families get on to a better deal and what measures they have put in place to make it easier for customers to switch providers.

“At our meeting earlier this month we reached significant agreements such as contacting all customers who are on expired discounts and telling them how much they can save on a better deal, but more can still be done,” the Prime Minister told The Australian.

In an attempt to reset the ­agenda and break free from the political crisis surrounding the government over citizenship, Mr Turnbull will today return to the Snowy Hydro Scheme where he will announce the fast-tracking of a $29 million feasibility study for the $2 billion Snowy 2.0 scheme to expand pumped hydro by 50 per cent and provide an extra 2000 megawatts of power to the National Electricity Market.

The scheme, announced in March, is expected to create about 4500 jobs.

The government is expected to be handed a report by the Australian Energy Market Operator next week which will give advice to the government on future baseload power requirements in ­response to the Finkel report.

Mr Turnbull said that while the retailers had responded “swiftly” to the government’s ­demands put to the meeting three weeks ago — that they act to ­reduce soaring electricity prices — more measures were needed.

“That’s why I’ve called the ­energy retailers back to discuss further measures we can take to reduce the price of power for Australian households and families,’’ he said.

“I’m taking immediate action to reduce energy prices. It is not good enough that some customers cannot afford to turn their heating on in winter and their airconditioning on in summer.”

Retailers had agreed three weeks ago, when they were first dragged to Canberra to justify price increases in July of up to 20 per cent, to a number of reforms, ­including rules requiring them to report to the ACCC the number of households that remained on ­expired retail deals.

Agreement was reached to ­require retailers to contact all the customers who are on expired discounts and offer access to cheaper deals, provide comparison rates to customers and rules obliging companies to inform customers when their discount benefits end and the price impacts.

Also mandated was protection for families and individuals battling hardship so they would not lose discount benefits for late payments.

The changes to rules governing consumer pricing are acknowledged as being a short-term fix to provide cost-of-living relief to households.

The longer-term challenge looms when the government considers the AEMO report, which will be taken to cabinet early next month.

It is expected to recommend new investment in baseload power, with a number of coal-fired power plants due to close over the next five to 10 years.

“I have been heartened by the rapid response of retailers since the last meeting and I look forward to further frank and forthright discussions on Wednesday,” Mr Turnbull said.

“Providing reliable and affordable energy was the priority issue as I spoke to locals in pubs and cafes across regional NSW last week.

“It is vital we do all we can to ­ensure all Australians are on the best possible deal for their energy needs.”

The CEOs called back to outline their responses to the governments demands include Catherine Tanna (Energy Australia), Frank Calabria (Origin Energy), Andy Vesey (AGL), Paul Broad (Snowy Hydro), Paul Geason (Momentum Energy), Jeff Dimey (Alinta Energy), Carly Wishart (Simply Energy) and Matthew Warren (Australian Energy Council).

Gas companies are yet to learn the level of export restrictions the Turnbull government will apply to address the shortage of domestic supply, largely due to state government bans on tapping into large onshore gas reserves.