Keith Pitt (Hinkler, National Party, Assistant Minister for Trade, Tourism and Investment) Share this | Hansard source

In summing up, I thank all members for their contribution to the debate on the Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017. The legislative package will amend the Competition and Consumer Act 2010 to abolish the limited merits review regime. However, information disclosure decisions made by the Australian Energy Regulator, the Economic Regulation Authority of Western Australia and the Australian Energy Market Operator will not be included in the amendments and will still be subject to the limited merits review to prevent the Australian Competition Tribunal from reviewing certain decisions under the national energy laws and to ensure that decisions made by the Australian Energy Regulator under those laws are not subject to merits review by any state or territory body. This is intended to prevent energy network businesses from using this appeal mechanism to increase their regulated revenue, which results in increasing costs to consumers.

Since it was introduced in 2008, the limited merits review regime has enabled around $6.5 billion more to be passed on to consumers than would have been the case if the Australian energy regulator's decisions had been upheld. Not once has an appeal by a network business delivered lower costs for consumers. A strong regulator is the best way to reduce pressure on network costs, which make up around half of the average electricity bill. We will be providing an additional $67.4 million to the Australian Energy Regulator to empower the regulator to put downward pressure on energy prices. The government is committed to reducing pressure on energy prices through the introduction of this bill. I commend the bill to the House.

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