The legal challenges could also affect the amount the NSW Government might receive for its proposed partial privatisation of NSW electricity network businesses. 

At the end of April, the Australian Energy Regulator released its final decision on Essential Energy's distribution determination for the 2014-19 regulatory control period, rejecting the state-owned electricity infrastructure company’s proposal.

The AER decision allows Essential Energy to recover $3826.1million from its customers over the 2015-19 regulatory control period, 31 per cent less than Essential Energy’s proposal to recover $5545.7million over the same period from its customers.

In what seems like good news for customers, the AER’s proposed lower distribution charges would see the average annual electricity bill for residential customers reduced by $313 (or 11.9 per cent) in 2015–16, and predicts charges to remain relatively stable over the rest of the period.

“Our review indicates that Essential Energy's historical costs are above levels that a prudent and efficient operator would incur in delivering safe and reliable network services to its customers,” the AER said in its final decision.

“This view was supported by our consultant, which found systemic issues in Essential Energy's work practices,” the AER said.

Networks NSW CEO Vince Graham responded to the AER’s decision saying the move will see a reduction in Essential Energy’s workforce state-wide.

“Now that we’ve absorbed the detail of the AER’s decisions, and because of the AER’s decisions, we expect 2750 jobs, or one in four positions, will not be funded in 2015/16, including 1100 at Ausgrid, 250 at Endeavour Energy, and 1400 at Essential Energy,” he said.

This battle for the price of electricity has now reached the courts.

This week it was announced the AER’s decision will be appealed by the state-owned companies that have been ordered to implement the price cuts, and a legal challenge has also been lodged on behalf of NSW consumers by the Public Interest Advocacy Centre (PIAC) to the Australian Competition Tribunal (ACT).

The PIAC is arguing that the revenue cuts and the savings to consumers should be larger than the AER’s findings.

This move by the PIAC is the first time a consumer group has taken action such as this, highlighting the importance of the decision to consumers.

Meanwhile, Mr Graham said legal appeals will be lodged this week with the ACT and the Federal Court by the companies involved. 

The AER said in its final report the decision was made due to “a consistent body of evidence demonstrating that Essential Energy's past expenditure has been higher than necessary to maintain its network safely and reliably,” evidence that was also confirmed by AER benchmarking analysis.

The AER saw “lower than expected demand growth in the previous regulatory period, which has led to falling levels of network utilisation across Essential Energy's network.”

“This means that Essential Energy is under less pressure to expand its network than in the previous regulatory control period to meet the needs of additional customers or any increased demand from existing customers,” the report said.

CONTROVERSY over the Baird Government’s power privatisation legislation continued this week as the government moved ahead with the plan, before the findings of an Upper House inquiry into the matter are handed down.

“The move to rush the power bill through early shows a total disregard for all the people and organisations who put a lot of work into making submissions," Unions NSW secretary Mark Lennon said on Tuesday.

Mr Lennon said the Premier’s move to finalise the Coalition’s plan before the findings of the Upper House inquiry are clear, would not sit well with working people.

 “Recent Unions NSW initiated research revealed 60 percent of people still stand opposed to the government’s misguided power privatisation plan because they know that privatisation doesn’t work,” Mr Lennon said. 

“He [Premier Baird] has displayed total disregard for modern rules of justice, fairness and due process.

 “It’s bad for workers, bad for service delivery and bad for household budgets,” he said.

 “This inquiry was set up under the expectation that it would examine the impacts of privatisation on working people and household budgets and put voters’ minds at ease. 

“The Premier should withdraw the legislation immediately and wait until the findings can be considered by all involved,” he said.