Senate inquiry to investigate gold plating of electricity networks and rising household costs
Federal Parliament has voted to hold a Senate inquiry to investigate whether the gold plating of Australia's electricity networks is artificially driving up the cost of electricity.
This week, the ABC revealed up to 60 per cent of some household electricity bills can be attributed to network costs, which is the amount passed on to consumers for maintaining infrastructure such as poles and wires.
In the past five years, some household bills have gone up as much as $1,000.
The network charges passed on to consumers are approved by the Australian Energy Regulator (AER).
Last week, a former employee of the Queensland Government-owned network Energex turned whistleblower, told a Queensland newspaper her bosses had examined how to artificially drive-up household power prices.
The former analyst claimed staff manipulated data in modelling as the company looked at ways to boost revenue.
The Senate inquiry, agreed to after a motion moved by Greens leader Christine Milne, will examine whether electricity network companies have given misleading data to the AER.
"We need to get to the bottom of why our energy system isn't serving households or the environment," Senator Milne said.
"Poles and wires make up half the cost of electricity bills and have been by far the biggest cause of rising power bills over the past five years.
"This inquiry will uncover whether this infrastructure was really needed or whether the system is being used by electricity companies as a money spinner.
"The Greens want to drive reform in our electricity market so that Australians can control their own power bills through solar energy and we can enable the smart and local clean energy systems of the future.
"It is now clear that centralised, big business monopolies are a thing of the past, and our electricity market must prepare for this."
The terms of reference for the inquiry will canvass issues such as the necessity for the infrastructure proposed, and whether allegations of price rorting by electricity companies are investigated.
The ABC has contacted the office of the AER for comment, which has a new chairwoman who only took up the role this week.
Paula Conboy has worked for more than 20 years in public utility regulation in Australia and Canada and was previously a Member of the Ontario Energy Board in Canada.
In a statement released as she began her role yesterday, Ms Conboy highlighted consumer confidence as an important priority in energy markets.
"The AER's work in network regulation and retail and wholesale markets helps ensure the integrity of energy markets, so that consumers can trust that they are receiving a service that meets their needs and are paying no more than necessary," the statement said.
A spokeswoman for the AER told the ABC the office will participate in the Senate inquiry as appropriate.
