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Letter to the editor: Energy Minister responds

Opinion Piece

Date : 16 May 2018

Author: The Hon. Josh Frydenberg MP

Publication: The Australian Financial Review

Danny Price’s article (“Sims’ electricity ideas will force prices up not down” May 16) is as bizarre as it is wrong. His claim that the National Energy Guarantee provides ‘little prospect of a decline in prices’ contradicts his own modelling, for it was his firm, Frontier Economics, that showed wholesale prices would reduce by 23 per cent under the NEG and that households would benefit by on average $120 a year.

It is one thing for his byline to acknowledge that his firm recently produced a report for Gentailer AGL on vertical integration, but it is another to dismiss the benefits of increased competition and transparency that will obviously flow from the Energy Security Board’s proposed changes to the contract market under the NEG.

Price also claims I have ‘confessed’ that the regulator ‘has broken the law on more than 30 occasions in recent times’. This is complete rubbish. If Price is referring to the now abolished Limited Merits Review process where networks had successfully appealed against the interests of consumers 31 times, then there is no apology. While the lawyers, consultants and the networks did very well for themselves out of this process, on not one occasion did Australian families and businesses benefit.

Josh Frydenberg
Minister for the Environment and Energy

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