NEW POWERS FOR WATCHDOG

THE consumer watchdog will be given a raft of new regulatory powers aimed directly at lowering household energy bills under a major overhaul of the National Energy Guarantee.

The Turnbull Government has unveiled a suite of new measures to drive down prices, which include taking over the operation of power stations and forcing the divestment of assets by companies such as AGL, which own generators and retailers in the same market

Prime Minister Malcolm Turnbull has threatened power companies with a “big stick” if they fail to bring down prices while the Australian Energy Regulator will get extra funding to make it more of a “tough cop on the beat”.

This would save households an estimated $183 to $416 a year and small to medium businesses between $561 and $1457 a year.

The Government will back recommendations from the Australian Competition and Consumer Commission to create a fixed “price expectation”.

Other price measures include a “safety net” in which retailers would have to offer customers the option of low-cost, default price contracts.

But the Government has raised the white flag on legislating a 26 per cent cut in emissions, admitting that the threat of several MPs threatening to cross the floor meant it would not be introduced until it had a chance of passing the lower house.

“In politics you have to focus on what you can deliver and that’s what we’ve done and we’ll continue to do,” Mr Turnbull said.