Electricity network costs reduced for customers

Households and business customers are paying less for their electricity network charges today compared to pre-privatisation, according to new analysis of Australian Energy Regulator data.

Electricity network charges are $251 lower today compared to 2015 for the average household and $1,769 lower for the average small business.

Treasurer and Minister for Energy Matt Kean said the new analysis was proof the NSW Liberal and Nationals Government’s record of strong financial management was delivering for consumers.

“Network charges have fallen by 26 per cent for the average household and 49 per cent for the average small business since the long-term lease of Ausgrid and Endeavour,” Mr Kean said.

“Chris Minns has been lying to the people of NSW, and now his grubby scare campaign that asset recycling raises customer bills is taking on water when you look at the cold hard facts. The Liberal and Nationals Government has ruled out future privatisation, yet NSW Laborcontinues with this shameful scare campaign.”

This is backed up by a 2013 Commonwealth Productivity Commission report on electricity networks, which stated, “[t]here is no evidence that the productivity, reliability, quality or cost performance of private sector electricity network businesses is worse than their public sector equivalents. To the contrary, the evidence in Australia and internationally suggests that such private sector enterprises are more efficient.”

More recently, the Grattan Institute’s 2018 Down to the Wire report highlighted that

“[e]vidence over the past decade shows that publicly-owned network businesses have not been as efficient as privately-owned businesses, increasing costs for consumers.”

In December last year, Opposition Leader Chris Minns signalled his plans to nationalise the NSW electricity grid.

Mr Kean said Labor’s plan for greater government intervention in the energy market is the biggest risk facing NSW when it comes to electricity reliability and affordability over the next decade.

“Our nation-leading Electricity Infrastructure Roadmap is driving $32 billion of private investment into the State’s electricity system, which is the best way to deliver affordable and reliable energy,” Mr Kean said.

“But Chris Minns’ ideological vendetta against private investment in the NSW electricity system risks driving away that capital, threatening our energy security and leaving households paying more.

“By his own admission, Chris Minns’ proposed government energy bureaucracy won’t deliver households any savings for seven years.

“Only the NSW Liberal and Nationals Government has a long-term economic plan to build infrastructure, create jobs and provide energy rebate support for households.

“It would be a disaster for energy bills if NSW Labor get their way with nationalising our electricity sector, and would threaten to undo much of the network savings that have been achieved over the past six years.”


Source: Australian Energy Regulator, Office of Energy and Climate Change (NSW)

image004.pngSource: Australian Energy Regulator, Office of Energy and Climate Change (NSW)

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.