[Greens-Media] Retail electricity price deregulation wont help struggling households

[John Kaye]

Retail electricity price deregulation wont help struggling households

Media release: 8 November 2012

The Greens NSW are calling on the O'Farrell government to reject federal
pressure to deregulate retail electricity prices.

('Federal pressure on NSW to deregulate retail electricity prices', Sydney
Morning Herald, 8 Nov, p. 2, http://j.mp/RiiiaZ)

Greens NSW MP John Kaye said: "Lifting the controls on NSW's standard
contract prices will not take the pressure off households and will
inevitably see some consumers pay a lot more.

"This is not the time for blind faith in markets and competition. The
figures show that the real cause of rising power bills is the gold plating
of the wires and poles.

"More than 57 percent of the $1130 price rise experienced by the average
NSW household since 2007 is the direct result of a spending spree by the
state's transmission and distribution authorities.

"No amount of retail competition will take that pressure off consumers.

"If Energy Minister Chris Hartcher would put aside partisan politics for a
minute, he  could help consumers avoid some of the punishing infrastructure
charges by cancelling unnecessary projects and supporting household
renewable energy and energy efficiency.

"Every consumer in NSW can opt out of the standard contract and look around
for better prices.

"The fact that less than 2 percent do so is a reflection of the limited
scope for solving the bills problem with more competition.

"The only winners in Federal Energy Minister Martin Ferguson's push for
deregulation would be NSW's privatised retailers who would be free to take
a much bigger slice of household budgets.

"Retail competition is a distraction from the real challenge of helping
consumers reduce their consumption, especially at peak times.

"If Mr Hartcher wants to help households he should reject pressure for
retail deregulation and work to reform the electricity grid rules that
discriminate against local renewable generation," Dr Kaye said.

For more information:  John Kaye 0407 195 455

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John Kaye
Greens NSW MP
phone: 0407 195 455
web: www.john.nsw.greens.org.au
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