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National Electricity Equity (Business) Project

What is it?

The NEE report is a 125-page report prepared by consultants, KPMG, that examines the inequities in network electricity pricing between country and city, especially in Victoria, NSW, Queensland and South Australia. 

Who commissioned it?

The City of Greater Bendigo and the Bendigo Manufacturers Group through a project steering committee led by Barry Ellis, the chief executive officer of the Bendigo company, Keech Castings. Other members on the committee included Jenny Dawson (Director, Bendigo Bank) and, City of Greater Bendigo (CoGB) Industry Development Officer Jeff Bothe and CoGB Resource Management and Climate Change Officer John Pollock.

What did the study do?
  • Examined the network electricity price difference between city and country regions.
  • Examined the impact of eventual removal of cross-subsidies on network electricity prices.
  • Examined the impact of removal of equalisation adjustments built into electricity privatisation deals in Victoria.
  • Examined further the pricing impact of power losses along power lines.
  • Examined the impact on prices in rural and regional areas of carbon or emissions trading.
What method did the study use?

The study compared the electricity bills from 10 metropolitan and 17 regional business locations in Victoria, NSW, Queensland and South Australia.

What are the study's key findings?

The study found that network electricity costs up to 40 per cent more in country areas than in cities and that removal of cross-subsidies and equalisation arrangements in Victoria and Queensland will leave rural and regional areas much worse off. 

How much did it cost and who paid for it?

The study cost $70,000 and was paid for by advocacy funds distributed by the National Electricity Consumers Advocacy Panel. The panel’s job is to ensure customers are as involved as players, such as suppliers and distributors, in electricity market decision-making.

Why has the CoGB and the Bendigo Manufacturing Group begun a national campaign about power pricing?

As a leading regional city with a significant manufacturing and small business presence, Bendigo must remain a competitive location for business. The NEE Business Project shines a light on the future for network electricity pricing across rural and regional Australia.

What will happen next?

The CoGB will continue to campaign for a fairer deal on network electricity pricing and will continue to highlight the impact that higher prices could have on country areas. It’s hoped this report will be taken up by rural and regional communities Australia-wide and convince governments that action must be taken to banish the inequities in pricing.