The Energy Consumers Australia’s submission to the review of the regulatory treatment of inflation focuses on the objectives of the regulatory regime, the promotion of the long term interests of consumers through economic efficiency. The choice of method for estimating inflation needs to result in current and future consumers paying no more than necessary.

Drawing on reports from experts the submission notes that neither of the two market based approaches proposed by networks better promotes the long term interests of consumers than the current RBA based approach and that using the top of the RBA inflation target range better allocates inflation risk and hence promotes the long term interests of consumers than the current approach.

You can read the response to the discussion paper here.