Energy regulator to investigate massive energy price gouging claims

The federal government has asked the energy regulator to investigate claims that electricity networks and gas companies are gouging customers hundreds of millions of dollars each year to pay their corporate tax bills.

Source: Getty Images/MultifacetedGirl

Federal Energy Minister Josh Frydenberg on Tuesday announced the Australian Energy Regulator (AER) probe amid suspicion energy companies are overcharging customers by as much as $400 million a year.

He said Australian Tax Office analysis between 2013 and 2016 revealed a discrepancy between the tax allowances the regulator previously set for network businesses and the amount they actually pay.

Stergos Kastelloriou reports.