Electricity prices are too high, admits Australian Energy Regulator chairman

Andrew Reeves, chairman of the Australian Energy Regulator (AER), has admitted that electricity prices are too high.

In an article published by Fairfax media earlier today (August 9), Mr Reeves is quoted as acknowledging that even though many Australian residents are struggling with a rising cost of living, the AER was currently powerless to do anything about it

"We consider consumers are paying more than necessary for a reliable supply," said Mr Reeves. "We are constrained in our ability to reject excessive demands from businesses."

The news follows a speech delivered by Julia Gillard to the Energy Policy Institute of Australia on Tuesday (August 7), in which the prime minister threatened to wield the "big stick of regulation" if states did not work to reduce power prices.

While energy costs across Australia have increased in recent months, consumers should not discount the potential value of switching electricity supplier.

By comparing the various options available through an electricity comparison test, people can often make significant savings on their monthly power bills.

The Australian Energy Regulator is an independent statutory authority which is responsible for setting the prices charged for using energy networks, amongst other responsibilities.

Posted by Charlie Moore