Move to end appeals for energy companies

A regime being used by energy companies to increase power bills is being scrapped by the Turnbull government.

Josh Frydenberg wants to stop energy companies appealing decisions about how much they can charge. (AAP)

The federal government is moving to abolish a tool power companies use to hike prices for customers.

Energy Minister Josh Frydenberg on Thursday introduced draft laws that effectively bring an end to the limited merits review (LMR) which, he says, has led to Australians paying $6.5 million more in energy bills since 2008.

The regime allows energy networks to appeal decisions by the regulator about how much they can charge.

Network costs account for up to half of household bills, so the move is being touted as a way to ease pressure on rising costs.

"In the face of escalating energy prices, the government is taking action to stop energy networks using the LMR to extract monopoly rents from consumers," Mr Frydenberg told parliament.

The Australian Energy Regulator is best placed to protect customers from unnecessarily high costs while making sure networks get a fair return, he said.