Huge networks costs across Victoria’s electricity network has been the number-one cause of rising costs for consumers.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
An Australian Competition and Consumer Commission (ACCC) report found regulation, over investment and a lack of competition in the energy market were the biggest contributors to soaring electricity and gas bills.
The report, which looked at prices across Australia, will be considered by the federal government.
It found network operators needed to continually invest in network infrastructure to meet regulatory obligations and ensure customers received electricity services without disruption.
Operators have also been encouraged to over-invest, leading to the gold plating of poles and wires.
The state opposition announced last week it would remove a moratorium on-shore gas exploration if it won government, in an effort to reduce gas prices.
Ripon MP Louise Staley said it would increase the supply of gas to users in Ballarat and the Central Highlands region.
“There has been a lot off-shore gas in Victoria, and some of those sources are coming to the end of their life, this policy says, ‘right we are going to look for more’,” she said.
“Labor’s policy is a moratorium on the exploration and development of conventional gas.
“We will remove that moratorium, we allow people to go looking for it.”
Ms Staley said farmers would have the final say on exploration on their land and the use of fracking would also remain banned.
The state government started a $40 million investigation into Victoria’s gas reserves while its moratorium on gas exploration is in place.
Acting resources minister Jacinta Allen said the opposition’s policy put Prime Minister Malcolm Turnbull’s political fortunes in Canberra ahead of the best interest of Victorians.
“The Victorian government is taking a science and evidence approach to this issue,” she said,
“It also importantly involves the landowners directly affected by exploration – we are doing this careful and considered work to determine exactly what the reserves are.
”What we have seen today is Matthew Guy and his liberal opposition are choosing to put Malcolm Turnbull’s political skin first.”
The ACCC report also found the growing cost of environmental programs had helped contribute to severe price rises since 2007.
It also said homes and businesses were under unacceptable pressure because of the costs.
The full report has not yet been released by the federal government.
