18 May 2016
Following a successful court challenge by the Baird Government to stop electricity bills from going down the independent Australian Energy Regulator (AER) has announced power companies have been allowed to increase prices.
In February, the AER’s pricing determination was successfully appealed by the Baird Government. It would have cut electricity bills for NSW households and businesses by about $6 billion over the regulated period.
The Baird Government fought against price reductions which would have cut average household bills by between $106 and $313 a year.
Small businesses were forecast to receive a cut of up to $528 from their annual bill.
The AER’s original determination, which Mike Baird opposed, provided for very significant price decreases initially and then smaller decreases over the successive years.
Now from 1 July 2016, electricity providers including Ausgrid, Endeavour Energy and Essential Energy will increase prices in line with inflation.
The independent energy regulator recommended that power prices go down but instead prices will go up and are likely to keep increasing.
Labor Leader in the Legislative Council and Shadow Minister for Shadow Minister Industry, Resources and Energy Adam Searle MLC said:
“The independent energy regulator said prices should go down significantly but the Baird government is doing everything it can to send prices up.
“Premier Mike Baird and Energy Minister Anthony Roberts said that under their watch power prices would go down but then they disputed the decision to cut costs for businesses and households.
“We can expect more price increases for electricity in the near future all because of Mike Baird.”