Antinuclear

Australian news, and some related international items

Australia’s power utilities blaming home solar, conveniently forgetting subsidy for air-conditioning

solar-on-houseUtilities want higher charges to shade business model from solarREneweconomy, By    20 May 2013The electricity supply industry has resumed and intensified its efforts to change the tariff system for rooftop solar households, in a bid to protect revenues that are falling and their business models that are eroding because more customers are producing their own electricity.

new discussion paper was released this weekend, “exclusively” to News Ltd newspapers which enthusiastically took up the chance to demonise the cost of renewables once again.

The upshot of the paper is that households with rooftop solar are “avoiding” network costs, and these in turn are being passed on to other users, which the electricity supply industry says are mostly less wealthy households.

The ESAA estimated the current total of “avoided” costs at $340 million, or around $30 per household.

To put this into context, this sum is – according to the ESAA’s own data – just one eleventh of the cross-subsidy paid by households with no air conditioning.….. Does the ESAA suggest that air conditioning households should be hit with higher fixed tariffs to pay for network extensions? No, of course not, because the increased use of air conditioners adds to the revenue pool of the electricity industry, and they want to get a return on their grid investment.

The use of solar, however, detracts from the incumbents because rooftop solar households draw less electricity from the grid – leading to the now well documented “death spiral.”

The ESAA wants to arrest this spiral by lifting fixed charges or introducing tariffs for solar households to maintain the revenue pool and protect its business model. This has already begun in several states, and to make itself look like an innocent bystander, the industry has brought the violins to play a song of woe on behalf of the least well off.  But this is not about protecting less wealthy households, it is about protecting the business model of the utilities.

What seems inevitable however is that the industry will one day soon need to change its business model of face the same decline as fixed priced telephony or printed photos. They are fast approaching their Kodak moment……

Solar is causing problems for traditional utilities because it is taking revenue away from the day-time peaks. Extending rooftop solar’s reach into the early evening, and combining it with smart technology, would remove the evening peak as well – and with even more revenue from the incumbent generators, network providers and retailers. But it would certainly reduce costs for customers……. http://reneweconomy.com.au/2013/utilities-want-higher-charges-to-shade-business-model-from-solar-92600?utm_source=RE+Daily+Newsletter&utm_campaign=fc04820a93-Daily_update5_19_2013&utm_medium=email&utm_term=0_46a1943223-fc04820a93-15813513

May 20, 2013 - Posted by | AUSTRALIA - NATIONAL, energy, solar

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