The federal government has directed the ACCC to inquire into retail electricity pricing, an issue, PIAA CEO Andrew Macaulay says the government has been complacent about.
Macaulay says, “I think it is a mistake to be buck passing this to an independent agency, particularly the timeline for any recommendation for this is so delayed. June 2018 is simply risible. This is a current issue, not a June 2018 issue and we elect government to lead, not buck pass.”
Earlier this week Prime Minister Malcom Turnbull directed the ACCC to look into retail electricity pricing. They will review elements including the key cost drivers of retail electricity pricing; the existence and extent of any entry barriers in retail markets; impact of vertical integration; whether there is any behaviour preventing or limiting competition or consumer choice; and the profitability of electrical retailers and whether these profits are proportionate.
[Related: PIAA demands energy fix]
Macaulay commends the Prime Minister on finally addressing this issue, but questions why it will take until June 2018 to find an outcome.
“The industry is suffering the catastrophic effects of failed energy policy from both sides of government, and we encourage the government to show leadership rather than commission reviews,” he says.
He says printers have been dealing with 50 per cent energy price increases year over year, as well as increasing instability in supply.
“This negatively impacts productivity, investment, and employment in this sector. Energy prices increasing at multiples of the rate of inflation make the sector uncompetitive against imports, and intermittent supply damages capital equipment and is deleterious to quality of delivery and service," Macaulay says.
Rod Sims, chairman, ACCC, says, “Electricity prices have nearly doubled on top of inflation in most parts of Australia over the last decade based on a variety of different factors. It will be important to understand and examine these different factors in each state and territory.
“The ACCC is also keen to look at the structure of the retail industry, the nature of competition, the representation of prices to consumers and other factors influencing the price paid by Australians for electricity. We enter this inquiry with an open mind and look forward to developing recommendations which can make a difference for Australian households and businesses.”
The PIAA has been to Canberra on a couple of occasions this year talking to several politicians about the energy crisis affecting many printers, especially those in South Australia.
The ACCC will work with energy agencies such as the Australian Energy Regulator and the Australian Energy Markets Commission. It will produce a preliminary report by the end of September, the final report is due June 30 2018.
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