Seems a strange position for them to take - it sounds as if Ergon and Energex have declared themselves to be the sole arbiter of what constitutes acceptable light levels and "spill". Councils should not absolve themselves of their responsibility in this regard.
I suggest you take it up with your Councillor - plenty of other city and regional Councils in Queensland still allow applications for shades to be fitted:
http://www.ipswich.qld.gov.au/__data...fact-sheet.pdf
https://www.moretonbay.qld.gov.au/up...ight-Shade.pdf
http://www.logan.qld.gov.au/__data/a...eet-Lights.pdf
https://www.redland.qld.gov.au/downl...pplication.pdf
Since they are keen to cite
"the requirement to meet the mandatory Australian Standards", you can point out that Clause 3.3.1 of AS 1158.1.2
"Lighting for roads and public spaces - Part 1.2: Vehicular traffic (Category V) lighting—Guide to design, installation, operation and maintenance" says:
"In sensitive situations, various measures may alleviate spill light problems, e.g. placement of lighting points, use of shields in the house-side of the luminaire visor or the use of cut-off luminaires."