Electricity retailers label complex power prices 'perverse' as industry goes to war with itself

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Electricity News

Power Prices,Time-Of-Use Tariffs,Power Bills

A simmering row between electricity retailers and poles-and-wires companies boils over amid claims consumers are being hurt by 'perverse' complex prices.

The spread of smart meters has opened the door to complex, and sometimes punishing, power tariffs.Energy retailers are distancing themselves from dynamic power price structures that typically charge customers more for power at peak times.

Energy retailers including giants like AGL are frustrated they're copping the blame for complex prices.The broadside from the AEC, which represents companies including Origin, AGL and Alinta, is the strongest denouncement yet from retailers amid a growing split in the industry over the reforms. The meters provide infinitely more data on how and when consumers are using electricity while allowing electricity companies to read those data remotely.But the meters have also unleashed a wave of complex new power prices, which often-unwitting consumers are being forced to pay.

These times are most commonly in the evening when cheap and abundant solar power has tapered off for the day and expensive options such as gas plants are required to fill the gap.ABC News: Brant CummingWith those signals, backers say, consumers will be less likely to use power during peak times, reducing the need for costly upgrades of the poles-and-wires network.

Under tougher safeguards proposed by the AEMC, retailers would be required to get "explicit informed consent" from consumers before putting them on a complex tariff. Energy Networks Australia said flexible tariffs were vital for "reducing the need for future investments paid for by all customers".

 

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