6 years ago
TURNBULL NEEDS TO ADDRESS COMPETITION CONCERNS OF NEG
Mark Butler MP
Energy experts in the Financial Review today have expressed increasing concern that Malcolm Turnbull’s latest energy policy thought bubble, the National Energy Guarantee (NEG) will have serious competition implications, lowering transparency and competition in the electricity market, and ultimately driving up prices.
Malcolm Turnbull and Josh Frydenberg’s claims the NEG has universal support among experts has been exposed by some of the country’s most experienced energy analysts and investors.
In particular, having retailers in the driver’s seat under the NEG is raising questions about increased market power of the big integrated energy companies. Emlyn Keane, Chief Executive of Evergen, has said the NEG "allows the traditional large retailers to maintain control over price setting.
“They can adjust their bill structures to slow down the groundswell of consumer solutions to control the cost and reliability of their own energy supply."
Former CEFC CEO and energy investor, Oliver Yates expresses similar concerns, saying “why would they seek to add to their position by placing retailers at the centre of the market?"
They represent a growing number of experts who are raising concerns previously admitted by the ESB, which has warned the NEG “may increase existing market concentration and market power in the retailing and generation sectors.”
Australia needs a national energy policy that will support strong renewable investment, lower prices, ensure reliability and improve competition in the market. We’ve had too many fig-leaf energy and climate change policies from this Government already.