The Gillard Government welcomes the release today of the draft Productivity Commission report into the regulatory framework for electricity networks as constructive input into a complex debate.
The draft report finds that aspects of energy network regulation has not delivered as intended in the long-term energy needs of consumers.
"Electricity network investment has been the major driver behind power price rises by more than 50 per cent - up to 70 per cent in New South Wales - over the last five years," said the Assistant Treasurer, David Bradbury.
"Unlike the carbon price, consumers have not been compensated for the increases in network charges owned and operated by State Governments.
"Consumers should be actively put front and centre of the regulation that governs the nation's electricity networks."
To deliver greater benefits to consumers, Energy Ministers are developing a package of ambitious energy market reforms for agreement by the Council of Australian Governments (COAG) at its meeting in December.
"While the National Energy Market has delivered many benefits to the economy, there is scope for improvement," said the Minister for Resources and Energy, Martin Ferguson.
"We must ensure the right balance is struck in our network regulation that delivers a reliable supply of electricity at minimal cost to consumers."
The Government will consider the Productivity Commission's draft report as one of the inputs to COAG - and the final report when it is received in April 2013.