Expose into Australian power prices

Australia’s ABC radio recently conducted a detailed research story into who is really to blame for the rising price of power in Australia. The background for the story is the claims by (amongst others) the Prime Minister of Australia Tony Abbott, that the Carbon Price and the Renewable Energy Target are the main drivers.

Jess Hill, an ABC journalist, found another side to the story in her background briefing and interviewed a wide range of industry stakeholders to get to the bottom of the story.

We all use and need a reliable electricity supply. However, the reality is that a number of factors are the main drivers of the recent rises; the Renewable Energy Target and Carbon Price are not in fact the big problems. The story found that the primary culprit is in fact rising network costs which represent around 50% of the average electricity bills.

Just how these costs have been allowed to become such a massive proportion of electricity costs is a complex story but simply put, proof now exists that network companies over-invested in networks because they are allowed too and because they can deliver increasing Government regulated profits for their shareholders.

Logically, they see solar as a huge threat to their business models – they make their money by selling energy, not buying it. This is the core is the problem and until our energy policies are recalibrated the tension is likely to continue.

Jess Hill has done a great job of collected the facts from a variety of stakeholders and de-mystifying the facts around this important story.

You can listen to the podcast here.

© 2014 Solar Choice Pty Ltd 

Nigel Morris