Frydenberg asks energy regulator to probe electricity price-gouging claims

The Turnbull government has asked the Australian Energy Regulator to investigate claims electricity network companies are price gouging customers to help pay their corporate tax liabilities.

While electricity networks and regulated gas pipelines receive an allowance as part of a revenue determination process to cover their tax bills, analysis by the Australian Taxation Office between 2013 and 2016 has found some companies may be claiming up to three times more than they should.

It is understood up to an extra $400 million a year may be being passed on to customers by the companies to help pay their corporate tax liabilities. This is in addition to the $600 million approved by the regulator.

Published in Financial Review, 15th May, 2018