This is how much energy consumers overpaid in 2014-2021
Energy network providers in Australia have been pocketing supernormal profits.
Energy network providers in Australia bagged some $10b in supernormal profits between 2014 and 2021 for charging consumers “substantially higher bills,” the Institute for Energy Economics and Financial Analysis (IEEFA) reported.
In a report, the IEEFA found that the profit of energy network providers were 67% higher than normal level of profit.
“People’s electricity bills are forecast to increase even further over the next 6-18 months as high coal and gas prices globally impact Australia’s domestic prices,” Simon Orme, who authored the report, said.
“Australia’s energy customers have been spinning golden silk for network providers for nearly a decade. They can’t be expected to fund super profits any longer. The extra burden must be removed.”
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He added this could delay the decarbonisation of Australia’s electricity system.
The IEEFA reported that ‘poles and wires’ distribution and transmission network service businesses have been charging consumers around 11% more than total costs.
“Of the 18 NSPs analysed, 14 extracted profit above IEEFA’s expected profit multiple range,” the report read, adding that this has imposed unnecessary additional average cost of 6.8%, or $800-1,200 per energy customers, onto people’s electricity bills in 2020.