Hold on a sec, weren't we all told that privatisation would lead to cheaper electricity prices?
Weren't we told that repealing the carbon tax would lead to cheaper electricity prices?
Weren't we told that sticking with (more expensive) coal and gas power over (cheaper) renewables and storage would lead to cheaper electricity prices?
From the ABC:
"At the heart of the price gouging inquiry, initiated by the ACTU and led by Allan Fels, is determining in a high inflation environment what's general inflation and what else might be influencing pricing behaviour, the main offending price gouging industries, how they do it and how it impacts everyday Australians.
"Part of the problem is Australia is awash with oligopolies, which means there isn't as much price competition as there might otherwise be, which helps explain why real wage growth has been low and why the real prices of so many goods are so high.
"And while most of the media attention has been on Coles and Woolworths, the report will include other sectors accused of customer gouging and breaching trust such as energy, airlines and banks.
"Sydney University professor Lynne Chester, from the school of social and political sciences, supplied the inquiry with a detailed submission ... [which] said electricity prices have been escalating since 2005, largely due to increases in the charges paid for the generation of electricity. She said the charge for electricity makes up a significant component of the electricity price paid for by consumers.
"A key issue was that the regulation was designed for a competitive market, assuming competition would deliver lower prices, but the market was never competitive due to the presence of big powerful generator companies that have been merging with retail companies to create giants such as AGL, Origin and Energy Australia."
#auspol #australia #economics #energy #privatisation #electricity #ClimateChange @australianpolitics #politics #business
Privatizing or deregulating a monopoly definitely won't drive general consumer cost savings since they have no incentive to actually make it cheaper.