The Australian energy system stands as a monument to vested interests.
It is a system controlled by owners who are protected from market forces and state governments content to milk consumers for all they're worth and more — because the rules allow it.
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| The value of the Australian power grid is not that short of that of the US, and that is a big problem. |
"The operators have spent a lot of money on building their networks to potentially provide excessive reliability," Craig Memery from the Public Interest Advocacy Centre says.
"That system has been bigger and more costly and, on top of that, the interest rate that is applied over the long term to that investment which consumers pay has been particularly high.”
Two-thirds of the grid operators' income comes from earnings guaranteed by the regulator linked to the value of their networks.
Read the ABC News story by Phillip Lasker - “Power prices: Australia has a gold-plated electricity grid that consumers can't afford.”
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