The Council of Australian Governments (COAG) Energy Council has called for submissions into the limited merits regime (LMR), which ensures consumers don’t pay more than necessary for electricity and gas.
Federal Minister for Environment and Energy Josh Frydenberg said Australian Energy Regulator decisions can be reviewed under the LMR to determine if prices are high.
“Since the reforms of 2013, 12 network businesses appealed the regulator’s determination to the Australian Competition Tribunal,” Mr Frydenberg said.
“Energy networks who have appealed determinations stand to earn an extra $7 billion throughout the next five years if their appeals are upheld.
“Network costs contribute up to 50 per cent of a typical household’s energy bill. Reining in network costs will mean households only pay what’s needed for safe, reliable and secure electricity and gas.”
The COAG Energy Council is seeking feedback on the effectiveness of reforms, including amendments to the existing regime.
Feedback on the consultation paper and the operation of the limited merits review regime will be received until October 3, 2016.
Submissions will be considered before the review team prepares advice for all energy ministers by December 2016.