Australia’s energy regulator wants to make sure households don’t wear the cost of “unnecessary” spending by distribution companies which have lost a bid to charge customers an extra $197 million.

The Australian Competition Tribunal has backed the Australian Energy Regulator’s May 2016 decision to reduce the revenue Victorian electricity distribution networks and ACT gas distribution pipelines can claim from customers.

The Tribunal found the regulator made no error when it rejected a bid by Victoria’s AusNet Services, CitiPower, Jemena, Powercor and United Energy and Canberra’s ActewAGL gas to charge customers $197 million more than the revenue cap.

“At a time when energy affordability is a serious concern, it is more important than ever that consumers have the confidence that we are carefully examining all aspects of network costs,” AER chair Paula Conboy said on Tuesday.

“Network efficiency is a key driver in making sure that consumers do not foot the bill for unnecessary spending by businesses.”

The appeal was the last one made under the now-abolished Limited Merits Review process, which power companies regularly used to fight attempts to cut their revenue.

Ms Conboy said the abolition of the review meant the regulator could continue to push for better results for power consumers.

-AAP