In a submission to a Senate inquiry,council chief executive Sarah McNamara said the government had not listened to experts or industry,who believe the sweeping new powers to break up big energy companies will have"unintended and undesirable consequences".
Ms McNamara said that''without amendment,the so-called ‘big stick’ will not reduce energy prices,or benefit consumers in any way. It is unnecessary and will discourage investment and risk increasing market volatility.”
But federal Energy Minister Angus Taylor toldThe Age andThe Sydney Morning Herald the new laws would not have to be used if power companies"did the right thing"by their customers.
The contentious proposed legislation,which met internal resistance from some government backbenchers,has been referred to the Senate's economics legislation committee,which is due to deliver a report on it by November 7.
The government took the policy,which enables as a last resort breaking up of an energy company for engaging in anti-competitive conduct,to the May election and has softened it slightly since it was originally proposed.
The Federal Court,not the treasurer of the day,would now decide whether a company should have its assets forcibly divested upon a recommendation of the Australian Competition and Consumer Commission.
Under the new changes the laws would expire in 2025,the powers would only apply to the conduct of energy companies in the wholesale market and there would be a so-called “Katter clause” to prevent forced divestment resulting in privatisation of state-owned assets.