[Greens-Media] Electricity price deregulation will create a new wave of energy poverty

[John Kaye]

Electricity price deregulation will create a new wave of energy poverty

Media release: 1 July 2014

Energy Minister Anthony Roberts is having a second attempt at lifting the
cap on electricity prices despite the consequences for many households who
are already struggling to make ends meet, according to Greens NSW MP John
Kaye.

('Greens to push for reverse on electricity price deregulation in NSW',
Sydney Morning herald, 1 July, page 9, http://j.mp/SMH140701)

Having failed to obtain parliamentary support for legislation to abandon
the more than 35 percent of households who had not joined the competitive
retail market, the Baird government gazetted a regulation on Friday (
http://j.mp/reg14-400) to lift the price cap after a transitional period.

The Greens will be moving to disallow this regulation with a vote expected
on the first day parliament resumes after the winter break.

Dr Kaye said: "The parliament rejected Energy Minister Anthony Robert's
attempt to lift the price cap on the 35 percent of customers who rejected
the competitive market.

"Now he is trying to sneak it through the back door by regulation.

"The claim that lifting the price cap will cause power bills to reduce is
not only counter-intuitive.

"It is an insult to the intelligence of the average consumer who has chosen
not to enter into the competitive market.

"De-regulating prices in an industry where three giant retailers dominate
95 percent of the mass market will see a substantial rise in energy
poverty.

"Deregulation means that the few who can afford the time and had the
background knowledge may be able to negotiate a better deal for themselves.

"For the majority of households though this will mean that electricity
triopoly are free to raise prices and fleece customers for even more.

"Bills will rise rapidly after the 12 month transition period.

"The Baird government is determined to abandon households to a complex and
confusing electricity market where retailers have been regularly caught
misleading customers.

"The Minister is creating a new wave of energy poverty.

"Many households will struggle with the complexity of price offers and will
end up paying much more than they can afford.

"Without the protection of a regulated price, consumers will face bills
that will tip them over the edge.

"The only winners will be the big retailers who will be able to extract
even more profit from vulnerable households.

"The Greens will be moving to disallow the regulation and maintain the
price cap," 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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