Power companies charge what they want

POWER distributors get to charge what they like because the regulator is under-resourced, a Senate inquiry has been told. 
 
Senior executives from Victoria's electricity distribution businesses were grilled by a Senate committee in Melbourne yesterday.
Senator Sean Edwards told the executives they were effectively able to do what they liked.
"You work in a heavily regulated environment, but the reality is you get your own way," Senator Edwards, a SA Liberal, said.
He pointed out the criticism of the Australian Energy Regulator made by Grid Australia chairman Peter McIntyre.
"He says that the Australian Energy Regulator doesn't always get it right, and is under-resourced and lacks the skills," Senator Edwards said.
"So, you fellas muscle your way in and generate good profits."

But the companies defended their record, and said Victoria had benefited from power privatisation, and had the lowest network charges in the country.
SPAusNet managing director Nino Ficca said peak demand was driving increases in power prices.
"Network expansion costs are in large part driven by the capacity of the system to respond economically to meet peak demand, not by average (use)," Mr Ficca said. "In recent years, average household electricity consumption has been declining."
This was due to improving energy efficiency, home solar power and consumer response to higher prices.
Australian Energy Market Operator acting chief executive David Swift said SA experienced the greatest peaks, with Victoria a close second.
"We have a fairly mild Mediterranean climate, into which is thrown a few heat waves," Mr Swift said.
"So we get a very high peak for a very short time."
Peter Bryant, in charge of smart meters for CitiPower and Powercor, said Victoria would benefit for years to come because of the devices.
"(We) expect to have automatic fault detection in place for customers with smart meters by mid next year," Mr Bryant said.
"So customers will never have to call us again to tell us their lights are out."
The Baillieu Government this week announced that optional flexible peak pricing would be introduced from next year.
Mr Bryant blamed a failure to sell smart meters for the public's lukewarm response to them. "Historically, the biggest issue facing the Victorian rollout has been the lack of effective communication," Mr Bryant said.

heraldsun.com.au 28 Sep 2012

It is reassuring to know for consumers that the government has failed to provide adequate resources to ensure a justified reasonable price rise for important utility services.

Another deliberate government failure that costs consumers millions.