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ACCC Electricity supply & prices inquiry a blueprint for lower costs & certainty

Our take-outs from the report:

  • Transparency creates more certainty for small business people.

  • We can have much lower energy costs for the business community.

  • The complexity and density of the report itself shows how complicated the system has become. The recommendations to remove complexity are applauded.

  • With the NEG we have a workable and achievable plan but there must be safeguards in place to ensure the system is not gamed by vested parties.

  • The parliament must support the NEG.

COSBOA today congratulated the Chairman of the ACCC Rod Sims and his staff for a thorough and constructive report coming from their inquiry into the power crisis in Australia.

Peter Strong, CEO of COSBOA, said today “the report shows just how complexity and a lack of transparency can create uncertainty and increased costs for the business community. The recommendations from the report show that small business people may decrease their power costs by almost a quarter which, in anyone’s language, is a substantial amount.”

COSBOA’s members are concerned that the costs of power have taken away any gains made from tax cuts and inhibited companies from growing, employing more people and writing business plans with confidence. Certainty and the removal of complexity is vital if business people are to make the best-informed decision for their business needs. Less complexity is essential if we are to have continued innovation, lower unemployment and a good economy.

Mr Strong added “the report helps develop certainty as it gives credence to the National Energy Guarantee (NEG) with the important warning that the NEG includes safeguards to ensure that any new obligations on retailers does not deliver advantages to larger players. We are aware that the Energy Security Board has recognised this risk in the development of the NEG and has sought to address it through mechanisms that will be built into the design of the policy. COSBOA and its members supports the incorporation of NEG safeguards to improve liquidity and encourage transparency. It must be supported by our politicians.”

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