EnergyAustralia submission to the ‘Power of Choice’ review

Ralph Griffiths, Wholesale Regulatory Manager of Energy Australia has responded on behalf of EnergyAustralia in regards to the AEMC’s ‘Power of Choice Review: giving consumers options in the way they use electricity’ draft report. Mr Griffiths prefaces the letter by stating “We agree with many of the propositions in the draft report, particularly the focus on facilitating more efficient pricing. However, we believe the proposed demand response mechanism for wholesale markets is unnecessary, overly complex and inefficient.”

He goes on to state that “In this context we do not understand the rationale behind the draft report recommending complex new arrangements to allow multiple commercial entities to supply a customer through a single market meter, or to create a new mechanism for customers to access the wholesale pool price. In trying to ‘gold plate’ the market, such arrangements would increase complexity and cost, reduce or confuse customer protections, introduce inefficient distortions and are likely to delay transition to more efficient pricing. Some consumers may benefit, but at the expense of other consumers who would bear the increased costs.”