LABOR Party candidate Debra O’Brien and Country Party chairman Peter Mailler have both slammed Member for Northern Tablelands Adam Marshall’s assessment of the draft determination by the Australian Energy Regulator (AER).
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The AER recommended a reduction to Essential Energy’s revenue allowances, which Mr Marshall said he feared would weaken the provider.
“The issue is the draft determination of the federal energy regulator, and it wants to absolutely destroy Essential Energy’s viability, which in this area would ultimately result in job losses and the closure of some depots,” Mr Marshall said.
“I’ve put in my own submission on behalf of the electorate opposing that vehemently, and I would encourage everyone to oppose it as well in the interest of safe and reliable electricity for country people. Make submissions to the AER and your federal Member.”
Ms O’Brien said the Labor Party's position was clear; it was opposed to the Coalition’s proposal to sell 49 per cent of the electricity ‘poles and wires’.
“Mike Baird has said that the full privatisation of the electricity network will be a matter for the next parliament. So even Essential Energy may be up for grabs, according to Adam Marshall’s boss,” Ms O’Brien said. “How many more concessions will the Nationals make in favour of their Liberal bosses in the City? They are committed to 100 per cent privatisation of our electricity network.
“As I travel around the Northern Tablelands talking to people, the cost of electricity is high on their list of concerns. The other concerns are unemployment and cuts to services. Yet, the sale of electricity assets proposed by the Liberal National Party government will make all of these concerns even worse, and, as has happened in other states, it will result in job losses, loss of services and an increased in costs.”
Mr Marshall said in terms of the ownership of the poles and wires, Essential Energy would remain 100 per cent public owned and that is absolutely not negotiable.
“That is absolutely guaranteed, in fact it will be further protected in legislation should the government be re-elected,” he said. Mr Mailler said the AER draft determination reduced Essential Energy’s revenue allowances by $6.5 billion, or 27 per cent over five years, and that determination was based on demonstrable reductions in the cost of capital, reduced forecast operating expenditure and more than a 60 per cent real reduction in the capital investment program, compared to the previous five years.
“It allows it to operate at a rate of return on capital of 7.15 per cent,” Mr Mailler said.
He said the simple truth was that AER determined the price of our power was too expensive, and had acted in the interests of rural and regional consumers.
“Any suggestion that Essential Energy would be ‘forced’ to cut maintenance staff is political scaremongering,” Mr Mailler said. “High electricity prices have cruelled many businesses out here and as soon as the AER steps in to ease the burden our local Member starts arguing against it. It is disgraceful. AER expects Essential Energy’s average residential customer’s annual bill to fall by $346 in 2015-16.”
