Power lines.
Power lines. Warren Lynam

Power company rejects 'overcharging' claim

ESSENTIAL Energy has hit back at claims it overcharged customers by $98million.

A representative for Essential Energy said the Australian Energy Regulator, which runs independently from operators and the government, decides the revenue Essential Energy can collect from customers based on forecasts set at the beginning of each five-year period.


"Inevitably there will be differences between the forecasts and actual electricity consumed during each period," the representative said.

"The AER's decision on the amount of revenue Essential Energy can collect to deliver a safe, reliable network over the 2014-19 period is still to be finalised."

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This response follows an article published in The Daily Examiner where the Labor Shadow Minister for Energy said Essential Energy had "admitted" to overcharging its customers.

"Following extensive customer and stakeholder consultation, Essential Energy has submitted a revenue proposal to the AER that will provide network pricing stability for customers," the Essential Energy representative said.

"This proposal is supported by the Energy Users Association of Australia, Public Interest Advocacy Centre and Energy Consumers Australia, and will mean that network charges will only increase by CPI until June 2019.

"Any additional revenue earned due to changes in energy consumption levels (for example due to hotter or colder than expected weather) will be limited to $100 million."