New rules governing energy provider upgrades

New rules to hopefully reduce electricity costs 16000646 800490491 0 0 7051261 300

The Australian Energy Market Commission has released new rules that govern how energy providers go about upgrades to their networks.

Federal energy minister Martin Ferguson said this should lead to reduced electricity prices.

He said: "The new rules make important changes to the way these costs are managed and balance the need to provide sufficient investment to maintain reliability while minimising costs to consumers.

"The rules will better equip the regulator to set network prices to make sure that consumers don’t pay more than is necessary for a reliable supply of electricity."

These stipulations include allowing greater powers regarding how the rates of return on capital are set which accounts for a large portion of rises in electricity prices.

The changes, which don't require the approval of government, will be implemented by AEMC on November 29 this year.

Mr Ferguson said this means these rules will apply to the next round of network determinations, which will occur in New South Wales and the Australian Capital Territory in about seven months' time.

These will then flow through to consumers' bills by halfway through 2014.

If you feel you are paying too much for electricity, talk to a comparison and switching service to see if there is a better deal out there for you.

Posted by Charlie Moore