Mitch Fifield (Victoria, Liberal Party, Manager of Government Business in the Senate) Share this | Hansard source

The government doesn't support referring the Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017. The government has a commitment to an affordable, reliable electricity system. To help put downward pressure on electricity prices, the government is taking action on all fronts. With network costs making up around 50 per cent of an average electricity household bill, the abolition of the LMR regime is a key part of the government's plan.

The evidence is clear that the LMR regime has failed consumers, adding $6.5 billion in prices for households and businesses. There has not been a single occasion when the LMR regime has reduced prices for consumers. The process is seen as a free option for network businesses. A recent Macquarie note described LMR, saying currently investors are getting this as a free option, with the upside being it brings forward a dividend surprise. This view was shared by the Council of Australian Governments Energy Council following the review of the limited merits review regime in 2016. The council acknowledged at its 14 December 2016 meeting that the regime was failing and was leading to higher prices for consumers.

Based on the clear facts, there isn't a need to refer this bill to a committee. I note that the shadow minister for climate and energy said on 21 June at a doorstop:

Abolishing the Limited Merits Review we support and there has frankly been too much time wasted over the last 12 months from the Federal Government to actually make that happen. So we are glad it has finally happened.

So the question as to why the opposition is proposing to waste time on a committee is one that the government doesn't understand.