What is the AER?

Australia’s electricity industry is governed by a little-known body called the Australian Energy Regulator (AER). The AER polices the system and makes financial decisions for the sector (including on profits).

One of the powers of the AER is to set the maximum budget electricity transmission & distribution companies can operate with over a five year period.

These budgets are capped and the power companies have to make do with what they have.

Cuts to electricity maintenance

Over the past decade, the AER has slashed the amount of revenue transmission and distribution companies can make – forcing these companies to cut costs by reducing planned upgrades and maintenance.

Spending on operations and maintenance of the electricity grid has been reduced by at least $1 billion per year since 2012 and because the AER lets energy retailers make mega profits, consumers are still paying the same amount for electricity.

This has left the community with ageing networks, poles and wires which are a risk to the community.