Aussies Pay Too Much for Electricity

The Australian Competition and Consumer Commission said that Aussies are being charged way more for their use of electricity. As much as $3 billion has been overcharged to electricity users, no thanks to the poor management of the industry.

ACCC chairman Rod Sims said New South Wales customers took much of the burden as they were overcharged by as much as $2 billion. In his speech during an energy gathering, Sims blamed the rise of electricity costs to unnecessary spending in the last five years.

The ACCC chairman added that the unnecessary costs were spent on “poles and wires.” Sims also said that the Federal Government did a poor job in controlling spending, which led to the inability of the Australian Energy Regulator to deal and manage excessive forecasts.

Because of these factors, power companies have taken advantage and added about $3 billion of costs to electricity bills.

The reason why NSW customers are also taking much of the burden is because electricity companies were permitted to jack up costs by close to $2 billion. Sims said power companies claimed that they have higher interests rates in NSW.

The ACCC chairman said the high cost of electricity has harmed and will continue to harm the country’s ability to do business. It also affects Australia’s business competitiveness that would eventually affect the Australian economy.