Industry wants prices to power down

INDUSTRY hopes a spark of agreement will catch on between states and the commonwealth when they consider proposals to lower power prices on Friday.

Australian Industry (Ai) group chief executive Innes Willox says the Council of Australian Governments meeting will be a test for the nation's leaders to put aside politicking and reach an agreement to benefit the entire economy.

Prime Minister Julia Gillard plans to pitch several measures to state premiers to save consumers up to $250-a-year on their energy bills.

The states will be asked to bolster competition in their electricity markets and consider introducing smart meters and cost-reflective pricing so consumers can better manage their energy usage.

"For the commonwealth it will be a test of whether they are just changing the subject on energy prices away from carbon," Mr Willox told the national conference of the Energy Efficiency Council in Sydney on Wednesday.

"For the states it will be a test of whether they are more interested in attacking the feds or in forging agreement on concrete steps to reduce price pressure."

The states could be forgiven their caution in approaching the proposals - since they know they'll be blamed if anything goes wrong - but none of their concerns should be deal breakers, he said.

Mr Willox wants the COAG meeting to decide what can be done right now to ease power prices and put the rest of the proposals "on a fast track" to finish up early next year.

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