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Date: 26th August 2004 Ref No. 1904
Don’t Ditch State Electricity Regulators
UnitingCare Wesley is urging the participants in tomorrow’s Ministerial Council on Energy (MCE), being held in Adelaide, to very carefully consider the implications of transferring all energy regulation to a single national regulator, the Australian Energy Regulator (AER).
UnitingCare Wesley acknowledges the administrative and political attractiveness of a single national regulator. However we are deeply concerned that the AER, as currently proposed, has no capacity to delegate authority or even monitoring tasks, to State or Territory based authorities.
UnitingCare Wesley notes the very useful report published last week by the Western Region Energy Action Group that showed the impacts of energy driven stress on 12 households. They reported that the average increase in energy costs for this group was 43.16% from 2002 to 2003. We also highlight the importance of recognising that electricity is an essential service, meaning that
There are three main reasons for UnitingCare Wesley opposing the current proposal for the AER:
1. No evidence that fuel related poverty will be reduced The electricity price for residential South Australian households has increased dramatically since the ‘privatisation’ of electricity supply, leaving many low and modest income households - in particular - experiencing increased financial stress.
2. Diminished or non-existent consumer voice. The proposed AER has no capacity to hear the concerns of South Australian Consumers – they would only hear from the lobbyists from the electricity industry.
3. States and Territories are different. The energy market in Australia is NOT a national market in practice. The South Australian electricity market is widely recognised as being different from other jurisdictions, having a very ‘peaky’ demand. An eastern states based regulator is unlikely to actively consider the local South Australian circumstances.
“ We are urging the State and Commonwealth Ministers to make two decisions at tomorrow’s meeting,” said Mark Henley, Manager of Advocacy and Communication.
“ The first decision is to continue State and Territory regulation for distribution and retail elements of the energy markets – national regulation of generation and transmission is more likely to be acceptable acceptable.
The second action is for the MCE to instigate an urgent investigation into fuel related poverty in Australia and then to consider implications of this for national energy regulation.”
Further Comment
Mark Henley 8370 1112 (ah)
Manager Advocacy & Communication 0404 067 011
8202 5135 (w)
(Note: M. Henley is also the SACOSS nominee to the ESCoSA Community Advisory Committee)
