AER’s Shallow Bite into Queensland Network Revenues

Emily Wood | October 30, 2015

The EUAA has expressed disappointment in the AER’s final decision regarding the revenue determinations for Queensland’s Energex and Ergon. ‘While the AER has made some reductions to the Ergon and Energex demands they have essentially still left energy users and consumers paying higher prices than should have otherwise been allowed,’ said Phil Barresi, Chief Executive Officer of the Energy Users Association of Australia (EUAA). We will consider the detail of the AER’s decision and it implications to energy users. The EUAA in its original submission to the AER on Ergon’s revenue proposal, for example, called for a 41% decrease in allowed revenues. We believe that the years of gold plating at the expense of consumers and users have given the network owners considerable guaranteed revenue returns. The AER needed to bite deeper into the demands requested by the networks. “EUAA members welcome and thank the Queensland government for its directive to the network businesses not to challenge the AER’s decision. The recent experience in the Australian Competition Tribunal has pitted consumer groups against the might of NSW networks as well as the AER.” said Mr Barresi. “Whether or not a challenge will be mounted by various consumer groups against the AER’s decision is still to be determined. It’s a costly exercise therefore a thorough review of the implications of the AER’s determination must first be considered.” said Mr Barresi.

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