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NewsIs a Regulated Power Price the Answer

Is a Regulated Power Price the Answer

According to a report by the Australian Council of Social Services (ACOSS) and the Brotherhood of St Laurence, a regulated retail power price could save households $261 a year in electricity bills.

The con to a regulated power price is that those who are proactive about their energy and seek out discounted offers could find them harder to secure.

While the government proposed default power price could reduce the energy bills for those on standing non-discounted offers by between 30% to 40%, the  energy director of the Grattan Institute, Tony Wood, says, those who have sought the best deals on the market could lose their discounts.

The Australian Energy Market Commision (AEMC) chairman, John Pierce, also adds that a regulated price would see retailers increase their prices to recoup losses and reduce discounts if a price cap were put into place.

Average savings per household of a fair, national regulated retail price in jurisdictions without an existing regulated retail price.

State/Territory 
 

NSW     

VIC     

SEQLD   

SA     

ACT      

 

$378.00

$436.00

$305.50

$411.80

$261.60

The AEMC has already rejected the government’s proposed plan saying a cap creates more risk for energy consumers. The implementation of a price cap could make energy more affordable for the 3 million people living in poverty or in low income household, it could also make it become less affordable for those who are sitting just at the above those lines and on energy discounts.

While energy prices have increased and made certain groups vulnerable, is there a happy medium to help those who need a price cap without affecting those who already have energy discounts that make their energy affordable?
 

What are your thoughts on an energy price cap? Tell us below.

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Is a Regulated Power Price the Answer

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Peter
Peter from NSW commented:

This has all come about by these socalled renewables. If the wind is free, & the sun is free, why are these products so expensive, & need to be subsidised. But like any product or service that is government subsidised, the price will rise because of greed by the supplier, ie, child care. Why isn’t energy the same as any other product, (eggs, clothes, newspapers, etc) where the price is set by the market. No government subsidies for one group of energy suppliers, & not the other. Peter B. 

Graham
Graham from VIC commented:

I assume that the old SEC operated under the Regulated Power Price. During that time energy was very affordable.. It wasn't until Privatisation of the energy source that prices became very expensive. I am still of the opinion that all utilities should be government controlled . 

David
David from VIC commented:

The producers ran the equipment into the ground while putting up prices year on year. Time to get back control and nationalize. It should never have been sold. Get rid of polies and get someone who can actually run this country how it should be. 

Anonymous
Anonymous from VIC commented:

Price cap or not - there should be a price cap, some companies charge very much more than others and giving a massive discount just to get customers. If you do your sum it comes more or less to the same amount. But what the government needs doing setting a better price for the solar feed-in. I am getting charged 37c KW for peak power but only receive 11c for the electricity my solar system creates during peak times. The power supplier makes 26c per KW on my investment and that is not fair!. 

David
David from NSW commented:

Todays prices are all about profit only, power should be treated as a utility for the benefit of people, so whatever needs to be done to achieve that is a good thing 

Robert
Robert from NSW commented:

No. The answer lies in the retailers being up front about their offers. Some of the discount offers are BS if you crunch the numbers on supply and usage rates. Those on standing non-discount offers are providing the massive profits, whilst those who have sought out a good discounted offer are paying what should be the norm.. 

Craig
Craig from NSW commented:

When we had government supplied regulated power we had one of the cheapest power prices in the developed world. We privatised the power and now have one of the most expensive. For a natural resources country that is inexcusable. 

Gertraud
Gertraud from ACT commented:

No! No! No! No! No! 

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