Margaret Cooney: Octopus Energy Chief Operating Officer on the new Electricity Authority rules for generators

Changes for our electricity sector could just be small steps in levelling the playing field. 

New Electricity Authority rules will require generators to sell energy to everyone at the same rate. 

This will stop our big four companies, known as gentailers, offering themselves discounts and limiting competition. 

Octopus Energy Chief Operating Officer Margaret Cooney told Ryan Bridge she's afraid new rules won't crack down enough on the big four.  

She says there's been lots of small steps, but it would be good to actually get to the nub of these issues. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
More tweaks for our electricity sector. As you've struggled to
warm your home up this morning, juice is freezing out there.
Big four gentailors have to sellp pout everyone at the
same price, not just themselves. Energy Minister Simon Watts reckons
it'll level the playing field and bring prices down. Eventually
we'll see. Margaret Keoney is Octopus Energy chief operating officer

(00:21):
with us this morning, Margaret, good morning, good morning. Will
this lower prices?

Speaker 2 (00:27):
Look? I think the idea behind this, which is that
the big four gentailors need to deal with competing terms
on a level playing field, is really important that what
we're concerned about is how it's executed. So the idea
at the moment is to put this in as principles.

(00:50):
I know from dealing with my four year old that
I final leave a bag of lollies in front of him,
you'll eventually go and grab the lollies. So I think
we need more than just principles. We need some robust
rules to ensure that discrimination doesn't keep happening, because ultimately
that really damages competition, which leads to a lack of

(01:16):
responsiveness in the market, which leads to a lack of investment,
which ultimately impacts the prices for end consumers.

Speaker 1 (01:24):
Do they need to grow some balls, Margaret?

Speaker 2 (01:29):
There's one way of putting it. But I think there
are some solutions that they can pick up quite easily
and implement. But it requires some decisiveness and it also helpful.

Speaker 1 (01:44):
Because the thing is, I mean you look at the
super peak hedge contracts that they've talked about. Yesterday in
August they came out and they said, let's do this
voluntary thing. Didn't work. Now that gent tailors must offer
minimum quantities. But then if that doesn't work, then they
might face regulation. I mean, it all sounds a bit
spiders ways, doesn't it. Well.

Speaker 2 (02:05):
I think this is the thing. We've had lots of
small iterative steps and I think it would be good
to get to the nub of some of these issues,
and something which addresses the structural elements would be helpful.
And so I think with the frontier of you going on,

(02:26):
there's this opportunity for government to use that to make
sure that the settings work really well rather than doing
lots of little tinkers are here and there.

Speaker 1 (02:36):
What's the big nuclear option? Is it splitting up the
gen Taylor's.

Speaker 2 (02:40):
So I think one of there won't be a single
silver bullet to this, but one of the things that
we've suggested is basically requiring these large players to operate
their retail and generation businesses at arms link because part
of the problem at the moment has been a real
lack of transparency around the trading behavior, and so that

(03:05):
would help resolve that, and then if those businesses are
behaving in the market, it will help stimulate all of
that investment that's sitting in the pipeline with independent generators
and things. Additionally, we think we're in such an acute
energy shortage that actually the government should look at doing

(03:29):
something immediately like a tender for new generation to come
into market more quickly. We think there needs to be
this comprehensive set of actions, and the access conditions for
the market is one ingredient.

Speaker 1 (03:49):
For it, rather than more tinkering around the edges. Margaret,
appreciate your time this morning. Margaret Kearney, Octopus Energy, Chief
Operating Office. For more from Early edition with Ryan Bridge,
Listen live to new Talks it'd be from five am
weekdays

Speaker 2 (04:02):
Or follow the podcast on iHeartRadio.