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Josh Frydenberg - Liberal for Kooyong
  
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Abolition of LMR to reduce pressure on energy prices

Published: Thursday, 10 August 2017

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The Turnbull Government has today introduced legislation to address escalating electricity prices by removing the ability of energy networks to appeal decisions of the Australian Energy Regulator (AER).

This will remove the ability of regulated energy network companies to game the system at the expense of consumers.

Network costs make up to 50 per cent of the household bill making this an important reform which can make a real difference to consumer bills.

Since it was introduced in 2008, the regime has seen consumers pay $6.5 billion more in energy bills than would have been the case if the Australian Energy Regulator’s decisions had been upheld.

Review decisions have only ever resulted in increased revenues for energy businesses and higher bills for consumers.

The Turnbull Government believes the independent regulator is best placed to protect consumers from unnecessarily high costs, while still ensuring energy networks receive a fair return. 

To boost the work of the AER we are providing an additional $67.4 million to help ensure it is sufficiently resourced.

The Abolition of Limited Merits Review Bill 2017 will amend the Competition and Consumer Act 2010 to prohibit the Australian Competition Tribunal from conducting reviews of the regulator’s decisions on energy network businesses.

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