Canberra households look set to benefit from the latest decision by Australia's energy regulator, with "unnecessary" spending by gas distributors blocked.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Australian Competition Tribunal said on Tuesday it had backed the Australian Energy Regulator's May 2016 decision to reduce the revenue ACT gas distribution pipelines and Victorian electricity distribution networks were able to claim from customers, potentially stopping as much nearly $200 million being passed on through domestic bills.
The tribunal found the regulator had made no errors when it rejected a bid by ActewAGL for the ACT and the Queanbeyan and the Palerang Shire, along with Victoria's AusNet Services, CitiPower, Jemena, Powercor and United Energy to charge customers $197 million more than the revenue cap would allow.
Australian Energy Regulator chair Paula Conboy said the spending would have been unnecessary.
"At a time when energy affordability is a serious concern, it is more important than ever that consumers have the confidence that we are carefully examining all aspects of network costs.
"Network efficiency is a key driver in making sure that consumers do not foot the bill for unnecessary spending by businesses," she said on Tuesday.
The appeal was the last under the now-abolished limited merits review process structure, which gave power and gas utilise a mechanism to regularly fight attempts to cut their revenue.
The federal government moved to scrap the review process from June, with relevant legislation passing the Senate in October.
"With the abolition of the limited merits review process, the AER intends to work more closely with network businesses, consumer groups and other stakeholders to deliver the best possible results for consumers," Ms Conboy said.
"The Australian Energy Regulator works to make all Australian energy consumers better off now and in the future.
"This decision recognises that the Australian Energy Regulator's regulation of businesses is founded on sound principles that can continue to deliver value for consumers."
The body is responsible for oversight of electricity networks and covered gas pipelines, in all states and territories except Western Australia.
It sets the amount of revenue network businesses can recover from customers for using their services and enforces the laws for the Australia's national electricity market and spot gas markets in southern and eastern Australia.
