The battle over power prices between the Australian Energy Regulator and NSW electricity businesses has been reignited over claims the regulator was forced to revoke its latest ruling due to "material errors or deficiencies".
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Networks NSW - which runs the businesses and was upset by the ruling, which will cut prices but force it to cut thousands of jobs - said on Monday the regulator had said its determination would be revoked due to the errors.
It released letters from the AER to Ausgrid, Endeavour Energy and Essential Energy dated May 13 which state the regulator had discovered the errors and "therefore considers it appropriate to revoke the determination ... and substitute with a new determination".
But shortly afterwards the AER fired off its own statement claiming it "has not revoked its determinations".
"The National Electricity Rules expressly provide for a process to correct clerical mistakes, accidental slips and mis-descriptions – the 'slip rule'," it said.
"The rules refer to this process as revocation and substitution. The AER has consulted with the businesses in regards to this possibility but has not made a decision yet."
The regulator said the process, to correct a "small number of administrative errors" was "not unusual".
Later, AER chair Paula Conboy said even if a new determination is issued, anticipated savings to electricity bills in 2015-16 of $165 for Ausgrid customers, $106 for Endeavour Energy customers and $313 for Essential Energy customers would not change.
"If the determinations were revoked and substituted to correct administrative errors, this would not change our decisions of 30 April, which are expected to lead to lower electricity bills for residential and business customers in NSW and ACT," she said.
In response, the Networks NSW spokeswoman blasted the AER's letters and subsequent statement as "contradictory and confusing".
"Their letter to the businesses dated 13 May says ...'it (the AER) considers it appropriate to revoke the determination ... and substitute with a new determination," she said.
"Today they say they haven't revoked the determinations, but if they do, the businesses will have 15 days from the date of substitution in which to appeal the final determinations." She described the uncertainty as "unsatisfactory".
The regulator and the businesses have been at each others' throats since last month when the AER announced deep cuts to the amount of revenue that can be raised by electricity companies over the next four years.
The announcement prompted a furious response from Vince Graham, the chief executive of Networks NSW who has warned 2750 jobs would be cut and it would affect the companies' capacity for bushfire mitigation and response times to natural disasters.
