Complementary modernisation: options to address the issue of affordability in the Energy White Paper

PIAC’s submission in response to the Australian Government’s draft Energy White Paper argues that the issue of affordability has not been given sufficient attention in this important policy document. In its submission, PIAC details the worrying trend in the affordability of energy in Australia and the associated increase in customer disconnections. PIAC argues that the issue of energy affordability must be considered by policy makers as part of  new policy initiatives and should be included as part of the four-yearly review cycle for energy policy that is proposed in the draft Energy White Paper. PIAC further recommends that an Affordability and Consumer Protection Sub-committee of the Standing Council of Energy and Resources, part of the Council of Australian Governments, be created to help develop a system of consumer protections that is in step with Australia’s increasingly sophisticated energy supply arrangements. Finally, PIAC’s submission recommends that energy green schemes be funded from a more progressive and equitable source, such as consolidated revenue. If this is not possible, then vulnerable consumers should be protected from the impact of the current regressive funding method of recovering the cost through increasing energy bills.