As Australia swelters through a heatwave, the Government has drawn the ire of energy providers with their proposed energy laws. Victoria and South Australia have experienced rolling blackout during some of this summer’s hottest days. 200,000 homes and businesses affected in Victoria as the mercury rose over 40 degrees. Consequently, the time has come to address the issue.
However, energy providers aren’t happy with the Government’s proposed energy laws.
What are the Government’s Proposed Energy Laws?
Keeping energy providers in line appear to be the aim of the proposed energy laws. Whereas amendments to the Competition and Consumer Act (CCA) would give the government more control over energy providers.
The Government would have power to introduce price caps and order the break-up of companies in breach of the laws. Also, energy providers found to be withholding wholesale price savings from customers could be fined.
Industry Reaction to the Proposed Energy Laws
24 provider submissions have been made to the Senate committee who are looking over the new laws. Only two of those submissions support the changes.
AGL have suggested the new bill doesn’t consider the cause of price rises. They say the cause of increases is due to the withdrawal of ageing power stations from the market. Likewise, they feel the new laws would discourage future infrastructure investment, and ultimately lead to more shortages and higher prices.
Similarly, Origin Energy’s submission to the senate committee stated, “The bill is unworkable, confusing, discourages investment, is an overreach into a free market, and a potentially costly burden on taxpayers.”
Are Your Getting a Top Deal?
The Government and energy providers are battling it out over new proposed energy laws. Make sure you’re not paying too much for power. To compare energy plans, let Billy Sumo find you a better deal!