Power cost warning

Feds could intervene with some energy bills higher than rent

POWER bills are costing some households more than rent and energy retailers are on notice that unless prices come down they’ll face Federal Government intervention.

Federal Minister Craig Laundy says a report by the Australian Energy Market Commission, which found just 39 per cent of Australians trust their energy retailer, didn’t surprise him at all.

“You now have the absurd situation where electricity bills are outstripping the cost of rent, and you’re seeing that particularly in regional centres where the rents are obviously lower than the CBD,” he said yesterday.

The watchdog’s report also reveals people feel they get better value for money from banks, phone and internet providers than their power companies, prompting a warning from Energy Minister Josh Frydenberg.

“My message to the retailers is unless they get prices down and they pick up their act, you will see more (government) intervention because that’s what the public will demand of their political leaders,” he said.

The Government’s proposed National Energy Guarantee is a way to avoid that intervention, but also stabilise the market and lower prices, he said. Mr Frydenberg admits hyper-partisanship has delivered uncertainty until now, contributing to higher prices.

He also blames low trust on the fact people find their bills too complex and discounts hard to compare or highly conditional.

“And you only get a better deal from your energy retailer when you threaten to leave, so in fact the retailers are rewarding disloyalty instead of the loyalty of their long-term customers,” he said.

Senior Labor MP Anthony Albanese said policy uncertainty had led to a lack of investment in renewables, driving prices higher. “They (the Government) have had a war on renewables,” he said.