Please quote Dr Brendan French, CEO of Energy Consumers Australia
"We are disappointed to see that electricity prices are going up again for households and small businesses.
"The Default Market Offer (DMO) exists to protect people, particularly those in vulnerable circumstances, from paying disproportionately high electricity prices. It’s not working effectively if it is priced 18 to 27% above more competitive offers.
"We’re pleased that the AER has again taken out the retailer competition allowance, but we’re very concerned to see a growth in wholesale costs again alongside growth in network prices.
"The sector should be focused on reducing costs at all stages of the supply chain, and making networks as efficient as possible, otherwise consumers risk losing the benefits of the energy transition.
"We’ll be releasing a report about the wholesale market in July that will look at structural issues, which as we’ve seen today, have real-world consequences for consumers’ bills.
"We believe it’s time for the AER to adopt the network utilisation metrics created recently by the University of Technology Sydney (with a grant from Energy Consumers Australia). This will lead to a more streamlined distribution network and lower costs for consumers.
"The DMO is only one part of a wider consumer protection landscape that needs to evolve with the times. We welcome the broader reviews currently underway that we hope will consider, among other things, the role of the DMO in the future, and where additional protections may be needed."
For interview requests or more information, contact Stuart Turner on 0415 403 208 or via email.
About Energy Consumers Australia
Energy Consumers Australia is the independent, national voice for residential and small business energy consumers. We enable residential and small business energy consumers to have their voices heard.
