Claims by the National Irrigators’ Council that profits made by energy network companies are $2.6 billion ‘higher than they should be’ are a misrepresentation of facts, Energy Networks Australia CEO Andrew Dillon said today.

Mr Dillon said when network businesses earned profits above the allowed return set by the Australian Energy Regulator, it reflected efficiencies made in their operations, not more money out of customer pockets.

In fact, under the incentive-based regulatory model, efficiency gains (reflected in higher than forecast profits) are returned to customers by way of reductions in prices.