Antinuclear

Dennis Matthews, 1 August 16 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.