Australian consumers likely to foot bill for power supplier's lapses
31 Aug 2012
Victorian electricity consumers could feel the pinch of a multi-million-dollar class actions brought by bush fire survivors after the energy regulator in a preliminary decision allowed SP AusNet to pass on liabilities that exceeded its insurance policy to its consumers.
With the ruling SP AusNet customers would pay for potential damages from class actions over the Kilmore East and Murrindindi bushfires, that left 159 people dead in February 2009.
Consumer groups yesterday slammed the decision, which the Australian Energy Regulator (AER) said was in the "long-term interests" of electricity users.
According to Roman Domanski executive director, Energy Users Association of Australia the decision was "totally inappropriate" given the increasing cost of power bills and allegations SP AusNet's negligence was a key factor in the bushfires.
He added, for the AER to face that situation and to propose making a decision where consumers would pay above insurance costs just did not seem to be giving the right sort of signal or incentive to SP AusNet at all to actually manage its operations and its business better.
He said the company should not be allowed to get away with just passing through to consumers whatever cost it proposed.
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