Electricity industry in a panic about renewable energy’s success
Disruptive power, The Age, Richard Denniss , 29 July 16 The Productivity Commission is 
criticising the Trans Pacific Partnership, the head of the Australian Competition and Consumer Commission is criticising privatisation, and the electricity industry is worried that competition from renewables might deliver lower prices to consumers. What on earth is happening to the Neo-liberal “agenda”?
We are witnessing a watershed moment in Australia’s economic and political debate. The grand narrative of “market good-government bad” is dead. Killed by the rent seekers and vested interests that couldn’t resist overselling the benefits to the same consumers and taxpayers they were busy gouging.
The mining industry can’t help asking for taxpayers to subsidise their rail lines…….
It’s hard to maintain the argument that government spending is bad for the economy when even the Institute of Public Affairs supports taxpayer funding for dams and coal railway lines in far northern Australia…….
The PC, which now refers to so-called “free trade agreements” as “preferential trade agreements”, recently said that the TPP includes provisions of “questionable benefit” to Australia. It was once heresy to suggest that a document called a ”free trade agreement” could do anything other than facilitate trade, but now the Lefties at the PC are encourage us to scrutinise the detail. Rules matter…….
the banks, the mining companies and the media moguls that shouted the loudest about “free markets” have always spent up big on lobbyists to ensure they got the rules they wanted. But now the cat is out of the bag. …….
As more and more batteries are installed in homes and businesses the peak load on the transmission network will be reduced, meaning that we will be able to save billions of dollars on line upgrades within and between towns and cities. Should that windfall accrue to those with an obligation to maintain the network, to the people who install the batteries, or be shared in some way? Rules matter……..
South Australia has cheaper electricity today than it had in 2007. There were no black outs during the so-called “crisis” and the vast majority of residential and industrial customers who are on long-term contracts didn’t even notice the five-minute surges in the wholesale spot price. When the interconnector upgrade is complete, and if a new interconnector with NSW is built, not only will SA be able to rely on more power from other states when the wind is calm, but SA will be able to export a lot more cheap energy when the wind does what it usually does in SA which is blow hard.
The fear that SA may soon be an even bigger exporter of cheap wind power is what is behind the recent “debate”. Their best chance to protect their profits is to ensure that the “market regulations” restrict the growth prospects for their main competitors. Rules matter. After years of getting the rules they wanted by arguing that they simply wanted “free markets” Australian rent seekers are now forced to win public debates about why we should give them the rules they want. It’s not going well for them.
Richard Denniss is the chief economist for The Australia Institute. http://www.theage.com.au/comment/disruptive-power-20160728-gqgazk.html
2 Comments »
Leave a reply to Dennis Matthews Cancel reply
1 This month
of the week – Disrupting War & Militarism in Oceania. Active solidarity. Radical practice.
Antinuclear 
Reblogged this on The Most Revolutionary Act and commented:
*
*
In Australia meanwhile, the fossil fuel industry is fighting renewable energy innovations that are lowering power prices for consumers. American consumers face the same pressures from the fossil fuel industry, though the forces at play are far less transparent.
LikeLike
The Editor
The Advertiser
Once again, South Australia’s electricity supply is in trouble.
The transition to solar and wind electricity has not been well managed, but this has as much to do with the National Electricity Market (NEM) and privatisation as it has to do with the technology.
The basic issue is one of supply and demand. Previously there was a surge in demand during heat waves, recently we had a plunge in supply. The summer surge in demand was met by gas-fired peaking power stations. A privatised electricity industry operating in an electricity market meant that these suppliers were in a monopoly position; they could and did command exorbitant wholesale prices, typically 100 times the average. Because of the NEM rules, these prices then automatically flowed on to all suppliers in the NEM.
The recent winter plunge in supply was met, under political pressure, by gas-fired power stations. Once again, the suppliers were in a monopoly position and commanded exorbitant wholesale prices.
South Australia is being held to ransom by socially irresponsible companies operating in a dysfunctional market.
Dennis Matthews
LikeLike