Taskforce finds energy pricing methods flawed

A SCATHING report from the Australian Industries Energy Taskforce has revealed profits made by electricity networks are more than $2.6 billion higher than they should be according to the Australian Energy Regulator’s (AER) rate of return guideline.

Taskforce finds energy pricing methods flawed Taskforce finds energy pricing methods flawed Taskforce finds energy pricing methods flawed Taskforce finds energy pricing methods flawed Taskforce finds energy pricing methods flawed

The taskforce alleges power retailers are overcharging customers.

The report was undertaken by the Sapere Research Group commissioned by the Australian Industries Energy Taskforce, a group of peak agricultural organisations.

Taskforce member and Queensland Farmer's Federation (QFF) President Stuart Armitage said increased energy prices have placed enormous strain on business viability for farmers and the current situation is unsustainable.

"The research shows the AER's rate of return data strongly implies the method used to determine the allowed rate of return, as proposed in the Draft 2018 Rate of Return Guideline, materially over-estimates the systematic risk exposure of the networks and breaches the rate of return objective in the National Electricity Rules," Mr Armitage said.

"Network prices represent around ha...