Grattan Institute puts forward energy reforms

A report has urged governments at all levels to go further with their energy reforms, than what the Council of Australian Governments (COAG) meeting indicated.

The Grattan Institute has sought higher standards for government owned businesses so that efficiency can be maximised, arguing that they currently enjoy too higher dividends for the risks they take.

Should the institute's recommendations be implemented, $2.2 billion could be saved which would equate to $100 a year for a household.

Some of the points put forward include:

►Giving necessary powers to the Australian Energy Regulator (AER) so that it can create rules about how much consumers pay and how much energy companies make in profit

►By transferring responsibility for establishing standards from the state governments to the AER and Australian Energy Market Commission (AEMR) - political interference is minimised

►Ensuring government owned businesses run as smoothly and efficiently as possible

Grattan Institute energy program director Tony Wood said these reforms will help consumers.

He commented: "People are worried about rising electricity prices. There are things governments can do to make a difference, and this report explains what they are."

If you aren't satisfied with your energy provider, talk to a comparison and switching service and see if there's a better deal out there for you.

Posted by Charlie Moore