Simon Watts: Energy Minister reveals latest steps to even power playing field

Steps are being taken to level the energy playing field.

The Electricity Authority is proposing new measures to stop the big four electricity companies from giving preferential treatment to their own retail arms.

It's working to increase competition - aiming to ultimately give consumers more choices and lower prices.

Energy Minister Simon Watts says things need to change.

He says prices are too high and are negatively impacting productivity and economic growth.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
So the Competition Task Force, the Energy Competition task for
this is the group that the government's set up to
sort out the energy crisis. They have come up with
a bit of a proposal to hit the gen tailor's
where it hurts. So at the moment, the Electricity Authority
doesn't do anything if a gen tailor which is a
generator and a retailer offers favorable contracts from its generation

(00:21):
arm to its retail arm, contracts that it's not offering
to independence, right. They want to change this so that
the Electricity Authority will be able to force the gen
tailors to do exactly that, to offer the same terms
on the same contracts to everybody. Simon watches the Energy Minister,
High minister.

Speaker 2 (00:39):
Very good afternoon, Ryan.

Speaker 1 (00:40):
Is this actually going to do anything?

Speaker 2 (00:42):
It absolutely is. It's going to create a level playing
field and the energy sector. We know that competition is
a major issue and challenge at the moment, and the
government takes competition seriously. This work is going to ensure
that we've got some non discrimination obligations. Basically means that
the gent tailors need to treat independent players equally, and

(01:05):
you know the old saying treat others as you treat
yourself is what this regulation is going to ensure occurs.

Speaker 1 (01:12):
How will it do that? Because do they have to
report to you? Do they have to show you the contracts?
Otherwise how will you know?

Speaker 2 (01:18):
So basically what the regulator is consulting on is the
concept of mandatory non discrimination obligations, which basically is making
it mandatory on the gent tailors not to discriminate against
the smaller independent players. I At the moment, many of
these gent tailors operate their own retail arms as well

(01:40):
as being a wholesaler, and they sell to themselves, but
they need to make sure they treat everyone fairly.

Speaker 1 (01:44):
Yea, But how will you know whether they're doing that
or not unless they show you the contracts, will show
that the electricity authority of the contracts that they're signing
with their own because they'll be commercially sensitive.

Speaker 2 (01:53):
Right, Yeah, there's a there is the commercial sensitive element.
But the regulator has said they're going to apply three
different steps. Firstly, they're going to have principles and requirements.
If that doesn't then work, then they're going to move
to a more robust non discriminatory requirement. And then beyond

(02:13):
that there's a third layer, which is basically in effect
mandated contracts and transparency.

Speaker 1 (02:21):
Get that, gettle that. But I just from the get go,
how is the electricity authority going to have any idea
what's in the contracts or do you just take them
at their word?

Speaker 2 (02:33):
No, the regulator has access to a lot of information
from within these organizations.

Speaker 1 (02:38):
The question is that they'll get the contressure.

Speaker 2 (02:40):
They'll be able to be able to see what's going
on in behind the scenes.

Speaker 1 (02:44):
Okay, all right, is this going to bring the power
bills down to reckon?

Speaker 2 (02:48):
Well, it needs to be. Our power prices are too
high in the moment that's having a major impact on
productivity and economic growth. We need more audible and reliable
energy and our viewers as this is going to be
a pathway in order to get us on that trajectory.

Speaker 1 (03:04):
All right, minister, thanks very much. So that that's Simon
Watts is the Energy Minister. For more from Heather Duplessy
Allen Drive, Listen live to news Talks. It'd be from
four pm weekdays, or follow the podcast on iHeartRadio.