ERAA Executive Director Cameron O’Reilly said that individual states introducing separate energy efficiency policies create large compliance costs for retailers operating on a national level.

“This growing array of “green tape” is impacting on a retail sector which includes large companies like AGL Energy and Origin Energy, but also smaller retailers that compete for customers under policies of Full Retail Contestability,” Mr O’Reilly said.

ERAA Chairman James Myatt also addressed the Committee saying “As with all regulation, this growth in climate change regulation has a disproportionate impact on smaller companies and ultimately costs the consumer.”

“While we all agree on the importance of addressing climate change, what we have now is a very inefficient approach to greenhouse gas abatement that is underlining the worst aspects of our Federal-state system,” Mr Myatt said.

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The ERAA also expressed concern over the delayed implementation of the National Energy Customer Framework, which will shift all non-price regulation of the energy retail sector to the Australian Energy Regulator, saying that there is still no certain implementation date.