Stopping network rorting requires rule change to reduce rate of return: Bandt
Greens climate change and energy spokesperson Adam Bandt MP today backed The Grattan Institute’s call to reduce the ‘regulated asset base’ of our electricity networks, which echoes The Greens’ call to reduce the guaranteed rate of return offered to networks to a figure that is, or is close to, the government bond level.
“There’s no justification for making consumers subsidise investment that is essentially risk-free,” said Mr Bandt.
“A rate of return of 6-7% for a regulated monopoly is unjustifiable when government can borrow at rates of closer to 2.5%.
“Network companies are making a risk-free motza and everyday Australians are literally paying the price.
“This report highlights the need to change the rules to protect ordinary people, who are literally getting disconnected from the grid because they cannot pay their bills.
“Reducing the rate of return network companies can charge is critical if we’re going to stop the rort and give power back to the people.”
Media contact: Gideon Reisner, 0429 109 054