Rising electricity prices: causes and solutions. CEDA Energy Options Project Sydney, 14 November 2012. Bruce Mountain Director. Australian electricity prices in global context. Outline. What is the nature of the problem?. Where is the Problem ?. Solutions. Where is the problem?.
CEDA Energy Options Project
Sydney, 14 November 2012
What is the nature of the problem?
Where is the
Regulated assets of distribution service providers
Expansion of the RAB
Higher allowed returns on regulated assets by AER than ACCC or state regulators
Possible explanations: Rising peak demand; ageing assets; historic underinvestment; customer density; planning standards ?
Some other possible explanations:
With lucrative returns on offer, why should we expect that governments that own NSPs and collect their profits will put the long term interest of consumers first?