01.Enough is enough on 'gold plating'
The Australian Energy Market Commission yesterday announced that it intends to introduce new rules that will mean electricity companies won't be able to profit from over-investing in their poles and wires, a practice known as ‘gold plating’.
CHOICE recently conducted a survey of over 1000 Australians that revealed most are very concerned about their electricity expenses relative to their costs of living. Rising network costs have been the biggest contributor to the increase in electricity bills.
These are the costs of paying the network businesses to transport electricity from the power stations to your home.
This IPART NSW chart shows how a typical regulated customer’s electricity bill has increased in NSW over the past 5 years. This trend is generally reflected across the nation.
Public submissions on the proposed rules can be made up until October 4. Once finalised, the new regime is then expected to be in place by November.
Help us campaign for lower energy bills
CHOICE hopes that if these new rules are adopted, gold plating will become a thing of the past. But these reforms are not a done deal – some parts of the energy industry are likely to resist these proposed changes.
To help us campaign for lower energy bills, including an end to gold plating, sign up here.