By Brian Robins
ELECTRICITY distributors are fighting moves to limit further their spending plans, arguing it may result in rising power disruptions.
The Australian Energy Market Commission held a forum yesterday in Brisbane to discuss rule changes that would give the Australian Energy Regulator, an arm of the Australian Consumer and Competition Commission, greater power to challenge capital spending plans.
Retail electricity prices rose 13 per cent rise in Melbourne, with sharp price rises expected over the next few years.
Criticism over surging power prices has prompted the review. Large electricity consumers, such as Australian Paper, Kimberly-Clark and Simplot, are challenging the spending.
Retail electricity prices rose 15 per cent in the September quarter in Sydney, according to Australian Bureau of Statistics data, eclipsing the 13 per cent rise in Melbourne, with sharp price rises expected over the next few years. ''There was significant underinvestment because previous regulatory regimes were overly focused on price outcomes,'' George Maltabarow, the chief executive of Ausgrid, the largest distributor in New South Wales, told the forum. ''We're having to catch up and invest now, which means consumers are paying for it, all in one hit.''
Proposed rule changes could reduce spending by $1.1 billion, cutting electricity prices by 6 per cent, the Energy Users Association of Australia said.