Consumer, small business and social sector groups are calling for a rethink of rates being paid by energy users to cover the costs of network infrastructure.
The collective of organisations is urging the Australian Energy Regulator (AER) to reduce the Rate of Return Instrument, used to calculate how much consumers pay network operators for their investments in poles, wires and substations.
In a letter to the regulator made public on Monday, they argue that while investment in energy networks is crucial, costs should be recovered at the lowest level necessary.
Brendan French, chief executive of Energy Consumers Australia which is among the groups calling for change, said a billion dollars of consumers’ money was being poured down the energy network drain.
“That’s money that can and should be back in Australians’ pockets for other essentials,” he said.
