Energy prices are high because consumers are paying for useless, profit-boosting infrastructure

The preliminary report on energy prices released last week by the Australian Competition and Consumer Commission (ACCC) suggests that the consumer watchdog is concerned about almost every aspect of Australia’s electricity industry. It quotes customer groups who say electricity is the biggest issue in their surveys, and cites several case studies of outrageous price increases experienced by various customers.

Infrastructure construction – including poles, wires
and substations – has far outstripped peak demand.

The report is long on sympathy about the plight of Australia’s electricity users. But the true picture is even worse – in reality, the ACCC’s assessment of Australia’s energy prices compared to the rest of the world is absurdly rosy.

Read the piece on The Conversation by the Director, Carbon and Energy Markets from Victoria University,  Bruce Mountain - “Energy prices are high because consumers are paying for useless, profit-boosting infrastructure.”