Power prices too high.

[Bobby]

I found this interesting graph.

[Bobby]

Why do we pay up to 3 times more than the USA for power?

[brian ross]

Why do we pay up to 3 times more than the USA for power?

Combination of factors, Bobby.

Australia a much smaller energy market than either the US or Europe. So costs are substantially higher, right across the market. I note your graph doesn't include WA for some reason. As we are tied to old technology, with fossil burning as an energy source, whereas the US and Europe uses substantial Nuclear and Green sources. Our power generators are getting old, with on average about 50 or more years on the clock for most of them. Newer energy generators are more efficient and are cleaner or non-polluting.

South Australia pays the most because a Tory Government decided to sell off the only major power generator to private industry and private industry decided it was cheaper and easier to buy power from the eastern states (and charge the consumer much higher fees), so they shut down and demolished the power generator at Port Augusta. When coupled with successive Tory and ALP Governments who were unwilling to spend the money - at the time - to force the private power generator to actually generate power in South Australia, the consumer was caught in a cleft stick. However, with the new Green Energy rebates, consumers in South Australia should receive IIRC up to $450 a quarter back from their energy bills.

[Black Orchid]

Why do we pay up to 3 times more than the USA for power?

We pay more than the USA for just about everything.

[Bobby]

Why do we pay up to 3 times more than the USA for power?

Combination of factors, Bobby.

Australia a much smaller energy market than either the US or Europe. So costs are substantially higher, right across the market. I note your graph doesn't include WA for some reason. As we are tied to old technology, with fossil burning as an energy source, whereas the US and Europe uses substantial Nuclear and Green sources. Our power generators are getting old, with on average about 50 or more years on the clock for most of them. Newer energy generators are more efficient and are cleaner or non-polluting.

South Australia pays the most because a Tory Government decided to sell off the only major power generator to private industry and private industry decided it was cheaper and easier to buy power from the eastern states (and charge the consumer much higher fees), so they shut down and demolished the power generator at Port Augusta. When coupled with successive Tory and ALP Governments who were unwilling to spend the money - at the time - to force the private power generator to actually generate power in South Australia, the consumer was caught in a cleft stick. However, with the new Green Energy rebates, consumers in South Australia should receive IIRC up to $450 a quarter back from their energy bills.

So Australians are halfwits?

[Bobby]

Why do we pay up to 3 times more than the USA for power?

We pay more than the USA for just about everything.

I would like to see a similar graph for our mobile phone charges.
I bet we're near the most expensive in the world
and the lowest speeds?

[brian ross]

Why do we pay up to 3 times more than the USA for power?

Combination of factors, Bobby.

Australia a much smaller energy market than either the US or Europe. So costs are substantially higher, right across the market. I note your graph doesn't include WA for some reason. As we are tied to old technology, with fossil burning as an energy source, whereas the US and Europe uses substantial Nuclear and Green sources. Our power generators are getting old, with on average about 50 or more years on the clock for most of them. Newer energy generators are more efficient and are cleaner or non-polluting.

South Australia pays the most because a Tory Government decided to sell off the only major power generator to private industry and private industry decided it was cheaper and easier to buy power from the eastern states (and charge the consumer much higher fees), so they shut down and demolished the power generator at Port Augusta. When coupled with successive Tory and ALP Governments who were unwilling to spend the money - at the time - to force the private power generator to actually generate power in South Australia, the consumer was caught in a cleft stick. However, with the new Green Energy rebates, consumers in South Australia should receive IIRC up to $450 a quarter back from their energy bills.

So Australians are halfwits?

Is that a serious question? Here? Really? Oh, dearie, dearie, me, Bobby. I'd have suggested that using this and other online fora, yes it is obvious that there are great many "halfwits" downunder. Many politicians believed that the market is fair, when in reality it can be distorted by individuals, corporations and of course Governments. Australia was once a proud socialist state. We, the people, owned our own airline, our own shipping line, our own railway lines, our own power and distribution companies, and so on and so on. Governments recognised that Australia was a small market and small markets fail to attract fair producers or services. Governments therefore stepped in to make the market fairer for the consumer. Personally, I blame Margaret Thatcher. She was a fool and it showed unfortunately. Today, we all live with the consequences.

[Bobby]

Is that a serious question? Here? Really? Oh, dearie, dearie, me, Bobby. I'd have suggested that using this and other online fora, yes it is obvious that there are great many "halfwits" downunder. Many politicians believed that the market is fair, when in reality it can be distorted by individuals, corporations and of course Governments. Australia was once a proud socialist state. We, the people, owned our own airline, our own shipping line, our own railway lines, our own power and distribution companies, and so on and so on. Governments recognised that Australia was a small market and small markets fail to attract fair producers or services. Governments therefore stepped in to make the market fairer for the consumer. Personally, I blame Margaret Thatcher. She was a fool and it showed unfortunately. Today, we all live with the consequences.

So it was caused by privatisation?
The Labor party never privatised anything?

[brian ross]

Is that a serious question? Here? Really? Oh, dearie, dearie, me, Bobby. I'd have suggested that using this and other online fora, yes it is obvious that there are great many "halfwits" downunder. Many politicians believed that the market is fair, when in reality it can be distorted by individuals, corporations and of course Governments. Australia was once a proud socialist state. We, the people, owned our own airline, our own shipping line, our own railway lines, our own power and distribution companies, and so on and so on. Governments recognised that Australia was a small market and small markets fail to attract fair producers or services. Governments therefore stepped in to make the market fairer for the consumer. Personally, I blame Margaret Thatcher. She was a fool and it showed unfortunately. Today, we all live with the consequences.

So it was caused by privatisation?
The Labor party never privatised anything?

Not as much, nor as gleefully as the Tories. In South Australia, in particular, the Tories privatised power generation, distribution and maintenance. Today they pay the penalty for that. Adam Smith warned that the market wasn't necessarily fair nor balanced. Cartels could be created and unless regulated it could become very nasty indeed.

[Bobby]

Not as much, nor as gleefully as the Tories. In South Australia, in particular, the Tories privatised power generation, distribution and maintenance. Today they pay the penalty for that. Adam Smith warned that the market wasn't necessarily fair nor balanced. Cartels could be created and unless regulated it could become very nasty indeed.

Yes Brian -
Hazelwood in Victoria was privatised by the Libbos under Kennett.

https://en.wikipedia.org/wiki/Hazelwood_Power_Station


Privatisation
Hazelwood Power Station and associated mine were privatised by the Kennett government in 1996
after many years of downsizing under a 'structural efficiency' model undertaken by the then state Liberal government.