Govt should be ‘mindful’ of meddling in energy market

Ernst and Young Power and Utilities expert Matthew Rennie says government should be ‘mindful’ about intervening in the energy market to force down energy prices. The comments come as the government prepares to reintroduce its divestiture powers through parliament. The legislation would allow, in extreme circumstances, the government to strip assets from energy providers if they are found to be distorting the market. Labor and the Greens oppose the legislation, while energy retailer AGL has called it ‘extreme.’ Mr Rennie has told Sky News that ‘forcing’ companies to sell their products below cost will not reduce prices for consumers long term. He says increased competition and new technology will do much more to drive down prices than market intervention.

from National | Daily Telegraph http://bit.ly/2WzeXOK