Power prices decreased as of yesterday, but are still too high

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Your next utilities bill may cost you slightly less, after Australian energy providers put lower rates in place as of 1 July.

But as welcomed as lower power prices may be, the Grattan Institute is warning Australians that high electricity prices are here to stay and is calling on the Government to stop pulling the wool over Australians’ eyes and admit the depressing future of energy costs.

According to a Grattan report released yesterday, wholesale electricity prices have risen by 130 per cent between 2015 and 2017, with household bills increasing by up to 20 per cent in 2017 alone.

The report says that it is impossible to fix the problem, because the price rises have occurred due to issues beyond the Government’s control, such as the cost of running old coal-powered stations, the rising price of gas and coal, and that electricity companies are ‘gaming’ the system by using “their power in concentrated markets to create artificial scarcity of supply and so force prices up”.

Right now, the rate cuts are being hailed as ‘relief’, although they won’t provide much succour from the hip-pocket pain of 20 per cent hikes last year.

However, any relief will be welcomed by age pensioners who are struggling to keep up with power bills, many of whom choose not to switch on a heater for fear that they won’t be able to afford to pay their bill.

While many will be happy with a slightly lower bill, not everyone will benefit. Origin customers in NSW and ACT will see no change to their electricity bill. Origin’s prices in southeast Queensland will drop by 1.3 per cent, while South Australia will see a one per cent drop. Origin gas bills in NSW will drop by three per cent in NSW and stay the same everywhere else.

AGL customers will have their residential rates reduced by 0.3 per cent in NSW, 1.6 per cent in Queensland and 0.4 per cent in South Australia. However, AGL gas prices will increase by 1.8 per cent in NSW and 2.1 per cent in South Australia but will stay the same in Queensland.

EnergyAustralia’s Queensland customers will benefit from a big 3.8 per cent residential electricity rate cut and a 7.2 per cent decrease for small business customers.

In NSW, EnergyAustralia electricity prices will drop by 0.2 per cent for residents, while gas prices will be unchanged. Both gas and electricity prices will remain flat for customers in South Australia.

Residents of states who don’t receive direct rate cuts may still shave hundreds off their power by enrolling in new direct debit savings programs. Some power companies are offering savings of up to 28 per cent for resident who approve direct debit payments.

With many power companies offering slight discounts on rates, others are staying put. To find the cheapest electricity prices in your state, visit CHOICE.

While power prices may drop ever-so-slightly this year, the Grattan Institute says we will never see a large enough drop in wholesale electricity prices to ensure the lower prices we have been used to paying in the past.

“Politicians should tell Australians the harsh truth: high wholesale electricity prices are the new normal,” states the report.

Will you welcome a slightly lower power bill?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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200 Comments

Total Comments: 200
  1. 0
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    The Problem With High Charges are THE FIXED CHARGES you can’t Moderate or Change Yourself by useage of Power.
    Lip service from the Greedy.
    {;=(#)

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      “You have high electricity prices because of the Carbon Tax” – Greg Hunt. Routinely promoted by the lying right wing media. Completely untrue but run every day again and again. Funny that!

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      Correct – costs money even before you use a single watt, and cutting your usage still results in higher bills.

      So much for ‘user pays’… and don’t forget that every time the cost of power to processing and sale of all goods, including groceries, goes up – so do prices.

      Read blurb on privatisation.

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      Attacking a government minister – gee, who would have thought that, Mick?? Same old, same old! Change the record Mick, it is broken and boring!

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      Quote and interpretation based on facts.

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      Ever listened to how Turnbull talks about Shorten Big Al. Your hypocrisy astounds me.
      The difference is I quoted whilst Turnbull slurs.
      My credibility is in tact. Yours is not.

    • 0
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      Take your own advice Big Al.

    • 0
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      OH dear the WEB TROLL AI called Raphael has a serious software flaw.

      The Raphael AI (with broken social code) keeps talking the same nonsense day after day after day.
      Raphael is you AI (artificial stupid) running on a server CPU in the PM’s office?
      How can I reboot it into a social problems aware web robot?

    • 0
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      Agree with you Chris BT – It is the supply charge that is totally out of control. In April 2012 my supply charge was $21.82. April 2018 – was $120.62. That is a 452.8% increase! Luckily I got solar (only 8 panels) when it was first introduced, and my last three bills have been $72.65, $15.04 and $88.44.

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      Big Al – your man Turnbull did it again today. The normal sleaze comment about Shorten. What a grub to be so disrespectful and so arrogant. Rich man in action.

  2. 0
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    Reductions are ok as long as they don’t come at the cost of company profits
    Idiotic clean energy and anti nuclear policies are what’s keeping prices high
    Energy providers should not be forced into providing discounts

    • 0
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      Total crap from one of the government paid trolls. I can hardly wait for the rest of the pack to arrive.

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      So companies are entitled to profit at any cost to the end user, who has no rights to cheaper products? so everyone was better off without companies involved?

      Thanks, Rafe – an outstanding reason for zero ‘privatisation’ into the hands of companies of utilities.

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      ‘alternative energies’ – like any massive required shift – incur higher start-up costs, and then settle into an established pattern of cost/return.

      Two problems arise – these are being managed by the same ‘private companies’ and thus derive the same additional costs for no benefit to the consumer – and those who are doing the figures cannot run a long-term business but engage in ‘smash and grab’ economics, by calculating the costs during start-up as being the bottom line for future profit, regardless of diminishing costs.

      For want of a better term – it’s called Greed Economics, and is one clear reason why utilities should never be out of the control of the people via responsible government…. I said RESPONSIBLE government – not self-serving twats with a hand in every private pie.

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      Contemptible statement, Raphael

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      Trebor – prices were never lower under government control
      They were artificially held down to appease the masses

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      Appease the masses. Please move to Russia, China or North Korea. Your level of ignorance is without equal.

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      So it wasn’t workers wage bills after all was it?

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      Now we appease the multinational corporations and foreign governments who control the grid and the prices.

      Spent $16 billion tax dollars in NSW alone to sell at $11 billion.

      Add to the dismal balance of trade figures.

      All so we can say how bloody marvellous private enterprise is.

      And Origin still isn’t paying a dividend.

    • 0
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      Rae – Origin share price has gone up almost 50% in 12 months

      Now if thats not a good return, I dont know what is . I’d rather have a 50% capital gain rather than a measly 5% dividend

      ORI will be declare dividends next reporting season

    • 0
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      “Idiotic clean energy”? Only a moron would say that. What do you want? Filthy energy?

    • 0
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      Share price? what about the dividend Rae is talking about?

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      Trebor – never mind son , don’t tire your small brain.

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      At least TREBOR has a brain capable of analysis. You Raphael are brain dead and can only reproduce what you are given on the idiot sheet. Don’t know where they find them.

    • 0
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      I take it from your reasoning above, Rae – that the dividend Rae will get after a two year drought will be 33.1/3% of current share price?

    • 0
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      Reasoning Rafe – not reasoning Rae… Rae knows what she’s talking about.

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      Can’t help you if you can’t read and understand my original comment Trebor
      I have no time for idiots especially lefty idiots

    • 0
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      You mean this li’l ol’ comment?

      “Rae – Origin share price has gone up almost 50% in 12 months”

      The difference between a share price and a dividend seems to escape you…… Rae’s waiting for a dividend, not a share price.

      If you have no time for those you consider ‘lefty idiots’ – Vaya Con Dios, Hombre… Adios Muchacho .. Hasta La Vista, Ba-by!

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      ORI will be declare dividends next reporting season

      That was my last statement – youre such a dil

      50% cap gain followed by strong profit and dividend declaration in coming years

      consider yourself schooled – now go away

    • 0
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      Ditto Raphael. You have no credibility.

    • 0
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      That’s nice of them after a two year drought…..

      Is that dividend going to be equal to that 50% increase in share value… i.e. 33.1/3% of share cost or spread over three years now 11% of share value .. or will Rae miss out again?

      If they take three years to pay.. oh, say…. a 3% dividend – that’s 1% per annum….

      Son, you simply cannot keep up in class…. and frankly, your attitude sucks.

    • 0
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      HERE!

      https://www.fool.com.au/2017/01/24/1-reason-the-origin-energy-ltd-org-share-price-has-gone-nuts/

      ” As can be seen in the chart above, Origin Energy shareholders have had a very good 12 months, to say the least. However, if we extend our view back five years from today, the company’s share price is down a far less appealing 47%. Ouch!

      So why has the Origin Energy share price rallied this past year? I hear you ask.

      The simple answer: Oil. “

    • 0
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      It’s a toss up whether to sell the shares and buy solar panels and batteries or to wait for the dividend to once again supplement my electricity bill.

      I must admit to not being a great stock picker. The idea of holding shares for dividend returns is fraught with the danger of poor management stuffing up the plan.

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      I think in the case of a ‘captive audience’ “business” such as flogging off power (that everyone needs), you will find that it is more a question of those making the decisions copping their excessive remuneration while arranging things, and not giving one damn about their small shareholders, who will never hold one of those positions.

      If they had a long term business plan, as I’ve outlined before – they would be able to pay a dividend from Year One – instead the ‘smash and grab’/’slash and burn’ style of ‘business plan’ mandates that they grab as much as possible for the big shareholders quickly and then bolt.

      Remember that your ‘board members’ etc who are copping remuneration and perks and outstanding super are all drawn from the ranks of the largest shareholders. They get paid during loss years.

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      Depends what company we are talking doesn’t it? If it’s carbon credits during Goldman Sachs carbon credit play or Murray-Darling water sales during Goldman Sachs Water play then there could be a very real danger of collusion and dodgy goings on.

      Certain Partners of Goldman seem to be turning up all over the place in positions of power.

      Hard to know if Serco or Goldman plan to rule the World.

      Of course it’s all okay. Captains of Industry and all. Just so long as we don’t have Socialism and actually use taxpayer funds to better the lives of taxpayers everything will be fabulous for the rich and deserving few.

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      Raphael does not want to keep up with the new, just keep on going with the old outdated energy production and keep on polluting the atmosphere. Renewable clean energy is the way of the future and is being rolled out all over the world faster than any other energy. Australia needs to get with the program and this will reduce prices. Only thing stopping it is those invested in oil,coal and gas.

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    My issue is as a single person I use less than the minimum but they say its the minimum they can charge. When I ask why they have no answer I think this is more to do with profit margins than an actual need. If Europe can embrace solar and windmill power, why cant we when we have more sunshine and wind than Europe does. Time to put pressure on the suppliers to be more green and do something about moving away from these more expensive forms of energy.

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      I keep asking why I can have a caravan that is self sufficient but I can’t have a house that is the same?

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      Ted – perhaps ask HOW Energy Australia can offer a 30% discount. If there power companies were doing it tough that would not be possible.
      The reality is that energy is a monopoly which needs legislation to end because the ACCC refuses to do its job.
      Solar is now cheaper than coal. Proven. When batteries come down in price and go up in storage capacity the only option the coal industry and its funded government will have is to either legislate to make renewables illegal or bring in an ‘availability’ charge to plunder people who do not want coal fired energy. Don’t put it past this lot.
      You are correct in pointing to Europe. Clearly the coal industry does not own the EU yet.

    • 0
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      Mick 30% of what? They all have different prices per kw so you need to work out what is really your cost of power. I worked out 3 companies the other day one with 10%, one with 20% and one with 30% discount. Difference between all 3 was a dollar in the overall bill.

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      Provide the figures OG and who the wholesale supplier is. That way readers can judge if there is a case to answer.

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      Mick there are different prices for electricity depending on where you live. You need to look up what is relevant to you not know what is relevant to me. I’m in a country area supplied by Essential Energy so my wholesale prices would not be relevant to many here.

    • 0
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      Mick I actually pay for per month for internet usage than I do for electricity so it’s not a big cost to me at all. However it is fun to work it all out from time to time.

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      Provide your figures OG unless you are fabricating this.

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      Ha ha do you own research and don’t rely on my research that is irrelevant to you.

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      Aha you ARE fabricating this. Typical.

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      Mick, when it comes to being conned by electricity providers with on time payment discounts, OG is correct. I believe that, providers should be forced to advertise and quote charges per kw/h in dollar and cents which include service charges and gst, just like new car dealers are forced to quote the cost of buying a new car.

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      Alinta Energy have moved into Qld offering 30% discount. Like OG we did the math and compared with our current provider AGL. I read bad reviews on Alinta’s billing. Phoned AGL. They matched the price within a dollar. How can they do this for some and not all

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      In this case, I agree with OG regarding the discounts offered. A simple bit of research from you Mick would show that he is correct. It is possible to find big variations between suppliers but they are al int eh basic on and off-peak charges, not on spurious discounts. To keep bleating “show me the figures,” when you can quite easily, in this case, do the research is rather pathetic. I have used my historical smart meter readout and presented it to various suppliers for quotes, and the end result, annualised, varied by up to $500. However, that applied to my particular usage, which will not apply to others. There are many factors to be taken into consideration, including life support system discounts as well as pensioner discounts, etc. By the way, you are correct in that solar is cheaper than coal Mick, as my rooftop PV system supplies free electricity during the day, but unfortunately none at night. Even on sunny days during the day for part of the time I have to call on the grid (cooking and boiling a kettle at the same time for instance), and of course at night it supplies zero. The result is that it is more expensive to supply solar and wind as there always has to be 100% of the alternative methods of generation available to cover the down times.

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      HS – I was simply asking OG to put up or shut up. He refused to put up the information so I can only think it might be non existent.

      Sceptic – The information is available. Not exactly in your face but available.
      If OG wants to make statements he needs to provide a bit of proof. You will note I frequently provide figures. Like the other day…
      Labor debt left – $147 billion
      This government’s debt – $551 billion as of 2017. Now likely > 600 billion.
      Ok accuse me of changing the subject. Just making my point.
      Your ‘news’ about rooftop solar is of course correct but as normal you have twisted the discussion. The talking point is about the generation cost of solar not when it is available. It is already cheaper than coal and still dropping. Maybe you need to tell party HQ about that!
      For the record batteries will be the end of the coal industry. Even this crooked government cannot stop that unless it introduces martial law and forbids the use of renewable energy. Don’t put it past them.

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      The hot air coming from the Lieberal Party trolls here would be a viable alternative energy source.

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      Yes Knows a lot, but is is poor quality and unreliable.

  4. 0
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    There would be no energy problems if 19 million Australian homes had solar. They would have free energy and return 68 billion kw back into the grid every year. The cost of solar installation per year would be less than the costs people are paying energy companies now and that installation cost would be paid off in five years and then energy costs would be in the past. We can consign coal and coal fired power stations into history where they belong. We could also in 2019 consign this government into history where they belong. Coal is just a scam by the big coal industries and 32 European countries are in the process of proving that fact – they are making coal obsolete.

    • 0
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      So agree! Why on earth aren’t people all doing this? Solar on every roof in Australia including businesses is what the aim should be. Coal is dirty and we shou,d not be holding it up as clean and needed.
      Maybe people need to take control by putting it on their own roof!

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      If every home had solar it would be a disaster as it isn’t available 24 hours a day and you need base load power as well. You can also only put back into the grid what can be used locally. So if everyone has solar and producing too much the grid won’t take anything so it is wasted. We need coal, gas or nuclear powered stations for when renewable energy is not available.

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      travelman – until batteries become the norm we cannot remove fossil fuel energy but can only reduce it. When batteries come in the game is over.
      The real question you should be asking is WHY the Howard LNP government allowed the world’s third largest LNG deposit to be sold to foreigners. And then ask why the Turnbull government is allowing our FREEHOLD farming land to be sold to foreign governments. The word TRAITORS comes to mind but the betrayal of us all goes on.
      Oh yes, the point of the above ramble: “we have no gas”. Unbelievable. And the media never prints!

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      The ability to export gas was a game changer for Australia. It meant no more cheap gas as we were now part of the world gas supply and they could charge world prices for our gas. There is plenty of gas but no more cheap gas.

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      OG – fake news!

      Exporting some gas is totally different to flogging off the lot. Why do you think we are having the discussion about fracking? Not one molecule available for Australians. That is the reality. Caused by Howard and his cronies. Now they do not for all intense purposes even pay a royalty.
      Australia betrayed by a Coalition government. Next cab off the rank will be food because our freehold farming land is up for grabs and being flogged to foreign governments.
      Please explain the wonder boom we are endowed with when we have no cheap and abundant gas and are hungry????? Write all the right wing crap you like but the facts are there is Australians care to look rather than self indulge and leave the politics to others.

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      Neighbours just had a 6kw roof system installed with 13kw of battery….. fully charged batteries are sufficient to see them through night time usage and the daytime is less anyway so some of the roof goes into the batteries.

      Excess goes into the system at a rebate/refund rate, while they are still connected it costs them connection fees.

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      I pay less than the connection fees already with no batteries so I can’t see the sense in paying out tens of thousands for batteries that make no economic sense.

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      I wouldn’t raise the subject of gas in the context of ‘privatisation costs’ and ‘the global economy….. gas is one perfect reason to disavow the global economy and take control of our own marketing of our own resources.

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      Correct TREBOR.

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    We never have cheap Electricity again until we have new High effect coal and or Nuclear power stations. Generating all needs from Solar and Wind is pure nonsense. No one ever mentions the enormous subsidies paid to Renewables and their short lifespan. Just work out how much has to be generated by the turbines to offset their energy use in production and installation, like 300 ton concrete foundations. Give me a break….

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      Wind turbines will never over their lifetime generate enough electricity to cover their initial cost and installation.

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      What a total load of crap Oldie84. Perhaps when you are sitting in 45C heat every summer you will wake up. Until then I make the prediction that by 2050 renewable energy will be a no brainer. Of course you will be dead by then, me too, but the legacy of those who share your view will have done its damage. Sad.

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      Mick who cares about 2050 as it wont make electricity any cheaper now.

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      Your grandchildren. Only creeps and monsters destroy that which sustains them and future generations OG.

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      Batteries next door are warrantied for twelve years, and the roof cells for twenty.

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      Well Mick right now I am freezing. But more to the point: the debate is totally of the rails. Just look at it with common sense, the economics do not stack up and only make things worse. Just look at the praise Sweden? got for dealing with its waste, it burns it. How is that, getting rid of your waste and pumping more Carbon Dioxide into the atmosphere. Our Grandkids will still need jobs and make a living.
      Not exporting our work not Countries that merrily build Power Stations whilst we shut ours down.

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      Gee I don’t even have a jumper on at the moment as it is quite warm here today.

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      Yes OG we should all just move up north and away from the high country. That’ll fix it.

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      Mick, do us all a favour and move to South Australia – you seem to be on their wave length! Hopefully that way, with the unreliability of that states power system, the rest of us will be spared your BS and one trick pony mantra – ‘all left good – all right bad!’ You will be happy in your power – less society, and the rest of us will only occasionally have to put up with your drivel! (When the wind blows!). And for the record, I have had a solar system on my roof since 2009.

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      The failure of the SA power supply network was placed to a gas-fired generator that didn’t kick in on demand…. had nothing to do with renewables.

      https://www.
      ews.com.au/technology/environment/final-report-reveals-the-causes-of-south-australias-statewide-blackout/news-story/d5499231749c6a858cdc3b4a78f5c7e1

      “While the Federal Government was keen to blame the state’s reliance on renewable energy for the blackout, AEMO said two tornadoes were the likely cause of five electrical faults that happened before the network went down.

      The state was left without electricity for hours when the tornadoes brought down three major transmission lines in the state’s north.

      But AEMO’s investigations found nine of the state’s 13 wind farms did switch off because they were unable to withstand voltage disturbances.”

      Same thing would have happened with any generator trips set th that setting… not one thing to do with overall renewable supply in any way.

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      My power was out for 8 days after the last storm in NSW and my daughters for a fortnight. We still had AUSGRID then and they were marvellous. I hate to think what will happen next time when all these private companies have to sort the mess out.

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      Oldie84 – me too. But only because it is an overcast day. Any other day we’d be using the heating for free rather than exporting to the grid or using coal fired power. You should be conscientious enough to do the same or join OG in Queensland and cook in summer.

      TREBOR – have a think about the hottest summer on record in South Australia 2018. No power outage. Because they now have storage batteries. This is why councils and businesses around the country are going it alone and installing same.
      For my part batteries are still not worth the investment and for now I’ll use clean energy of a day and supplement with a bit of dirty power of a night. Not for much longer. Just give me an excuse to get off the grid!

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    If people want to install solar in their houses , please do so but at market prices. Taxpayer should not be subsiding solar panels
    Until and unless wind and solar are profitable for energy companies to invest , any government forcing these companies to invest should compensate for the loss in profits through tax incentives and/or subsidies
    Why should investors pay for dumb green policies

    • 0
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      More of your government BS.
      ALL NEW INDUSTRIES are subsidised. That’s how you get them going.
      Solar rebates have been coming down for years and in a couple of years it will be gone entirely, as it should be.

      Solar generated energy is now already cheaper than coal. But you know all that. Please collect your weekly pay cheque and stay on coal fired electricity when everyone else has moved. Of course YOU will be the normal hypocrite you are and take the cheaper energy anyway. What a type!!!

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      Mick solar energy is very expensive at midnight. It is also so unreliable too. Have you seen the new IPART submissions? They wont to pay different rates for solar at different times of the day. I was thinking about a wind turbine hooked into my solar to take advantage of the midnight rates for solar.

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      When batteries come online your post will be shown for the right BS it is. Why did South Australia put in batteries. No problems there now….but not a mention from the right wing coal supporting media.
      Why are local government and companies doing likewise? Obvious.

      Maybe post your fake news and misinformation in the Telegraph OG where it will fit in perfectly.

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      At midnight most houses have the fridge running and maybe a heater. I turn heaters off when I go to bed, since it is warm as toast all wrapped up.

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      Batteries are arriving even now MICK. A friend had one installed recently and loves the reliability. No more blackouts. We have a lot of blackouts here.

      I chose to buy Origin shares instead but they can’t be doing too well as they stopped dividends for the past 2 years.

      Privatising a monopoly is a very dumb idea.

      I don’t use a lot of power. It’s not the money but the idiocy of selling off a public owned utility to foreign control and wondering why you are then subsidising foreign industries power bills.

      The LNP and ALP are dumb and dumber.

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      I have a generator for backup power so I have no more blackouts too.

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      Polluter – hope you are paying your pollution taxes….

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      I also have a wood fire. I create enough wood on my block to keep me warm in winter.

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      Yes OG. I have gas hob, woodier stove and lots of kerosene lamps here. I’m thinking of a generator for the fridge and freezer soon as we have a lot of trees and the storms seem wilder each time.

      The lines are often brought down around here now.

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      We have a portable Honda 2kva that runs our lights and fridges etc during blackouts. I can also use the fridge and stove in caravan which run on gas.

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      We cooked dinner for a couple of guests one night and as soon as we served it the power went off. So we picked up our dinners and went and ate it in the caravan. Those guests still talk about it as they enjoyed it so much.

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      Rae – yes I k now Tesla have a cost effective 15 kwh battery. This is about what we consume a day so it would work because we generate multiples of that except in winter when we would break even. The solution is more panels again. Done!
      At present I cannot justify $12,000 just for a battery but I am informed that a price war will happen soon as the market keeps growing so sooner of later I’ll be in.

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      I was considering refurbishing an old three storey house in France, and adding solar plus wind generator power into batteries, along with solar hot water. A bit ‘ard in Winter when it snows, though, but I’m sure the back-ups from wood fire heating of water would help, and remaining attached to the mains supply gets you over the humps.

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      Have a look at the property taxes on foreigners before you sink money into France TREBOR.

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      Yes – and the cost of employing local CRAFTSmen – not tradies… and the requirement to do so – Uncle Pierre can replace your roof for five times the going cost and you MUST use local craftsmen who know the ropes etc.

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    Power prices will never go down in real terms under a ‘privatised’ distribution system, for the simple reason that duplicating providers with all the incumbent extra costs of duplicated staff, facilities, shareholders, overpaid CEOs etc, and board members overpaid to billy-oh for nothing etc.

    It is simply not possible to replace a ‘one-shop stop’ with a multitude without raising the general cost of supply.

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      We have gone forma model where no one made a profit to a model where every one wants to make a profit at all levels. That’s why electricity is more expensive today.

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      Competition always drives down prices
      Basic economics
      Unless of course government policies (read labor) seeks to prevent true competition

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      Under government controlled utilities sector, the only way prices can be kept below market is through taxpayer subsidy
      What you get in lower electricity prices you pay for elsewhere
      Just becuse it’s invisible to you doesn’t mean you’re not paying for it

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      And remember TREBOR that privatised industry is after returns. As much as can be milked out no matter if honest or otherwise.

      We do need governments to limit price rises. Under the current rich man’s government that is not going to happen. Ever.

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      The original shareholders – the public – made a profit every year in lower prices, OG.. and have received only higher costs due to the caretakers selling off the utility without the consent of the shareholders.

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      If competition had driven down prices – why are we paying much more now – way beyond inflation rate.

      https://www.macrobusiness.com.au/2017/07/privatisation-pushed-australias-electricity-costs/

      “Too often we assume that private and corporatised state-owned corporations are operating efficiently. In the real world such as in the Australian economy where the checks and balances are imperfect and companies exercise considerable power…

      Electricity is now management heavy with a blow out in the number of managers relative to other workers. In addition electricity now employs an army of sales and marketing and other workers who do not actually make electricity.”

      Read it and weep, supporters of private enterprise as the be-all and end-all of everything.

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      Trebor you poor delusional leftie
      I’m sure every utility company, bank and manufacturing company made enormous profits in Russia, China and Cuba as well under communism
      Oh yes and of course at extremely low prices

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      “Adding up the additional labour costs of the new functions under privatisation, corporatisation and marketization and adding the costs of allowing returns on fictitious capital and retained profits we find that the additional charges are likely to be of the order of $404 to $502 per household per annum…”

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      Demolition complete.. mission accomplished… Ham and Jam.

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      So any view based on hard facts and figures is delusional, Rafe? You poor deluded fool…

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      You’re comparing Australia Past with Russia, China and Cuba under communism?

      Please explain why such a stance is not delusional.

      I’d like to see a full rendition of how Australia was formerly – pre-privatisation with all its claimed benefits – the same as Russia, China and Cuba (etc).

      Please explain?

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      Good analogy TREBOR. Privatisation of public assets is exactly the selling off of taxpayer shares for no return to the taxpayer.

      Even now taxpayer funds are being used to build infrastructure, airports etc for private companies. No complaint about that from the free marketeers.

      It’s as close to theft as you can get but legislated into being.

      Russia, China and Cuba have cheaper power now than we do here because they aren’t paying a bunch of management over the odds and shareholders as well. We are actually subsidising Chinese power through the high prices we pay to Chinese owned power companies.

      Dumb and Dumber.

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      I doubt macrobusiness.com.au is a ‘deluded leftie’ organisation.

      (victory roll over airfield)…….

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      Raphael – you really are a halfwit mate. Sorry but you bring it out.
      YOU know full well that Russia is a democracy in name only and that Putin and a few of his cronies are making money and nobody else is.

      Rae – TREBOR is correct. Whenever something is spun off the lifeblood is sucked out of it and consumers pay more. Industry Superannuation Funds are now in the firing line from the Turnbull government. The reason given is union representation. The real reason is the big end of town wants its own in charge to milk the funds. A work in progress.

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      MIck – your inability to understand basic first year economics means it any not worth my time trying to explain anything to you
      Stick with your lying labor rhetoric

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      If you mean I do not agree with your right wing propaganda then I agree.
      If you mean I have you by the short and curlies then that is a victory for decency.
      The last bit just cracks me up. LIES? That is the modus operandi of the current government. Lie on lie on lie. This lot could not even lie straight in bed. Or as your ex fuhrer was reported as saying ‘if you just repeat the same lie long enough people will accept it’. Sorry, I won’t.
      In terms of intelligence you would not survive in the same room as me Raphael. Your posts reek of being a halfwit. Apologies for the serve but I have about had enough of the crap you serve up as informed comment.
      What do you think TREBOR?

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      Rafe – your economics ability seems to be limited to the assumption that competition will always generate lower prices – perhaps so in an open field – but not in what is essentially a closed monopoly spread around to a few ‘companies’, who function as an oligarchy and front their benefactor (the Guv’nah) regularly with cap in hand and cry poor so they can further dispossess the poor…..

      Read below – since the Gu’vnah is a primary shareholder, the Guv’nah will not refuse rises.

      Wow – 0.2-0.3% reduction in NSW! Think I’ll turn on all the big lights and throw a huge party all night.

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      Yeah TREBOR. He’s been reading too many primary school books on economics. Noddy and Big Ears by the sound of it. Chuckle…..

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      I studied Economics, but I’m way past the simple stages and well into the Dark Universe stage….

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    “….. price rises have occurred due to issues beyond the Government’s control, such as the cost of running old coal-powered stations, the rising price of gas and coal, and that electricity companies are ‘gaming’ the system by using “their power in concentrated markets to create artificial scarcity of supply and so force prices up”.”

    What? So it has nothing to do with the ridiculous Paris Agreement targets then? Nothing to do with the expensive and unreliable move to renewable sources when base load is not in place and can’t be matched? Nothing to do with the expensive subsidies given to renewable energy architects? Nothing to do with the shortfall of Australian resources locally caused by shipping most of the product overseas at really cheap prices allowing the purchaser to generate electricity far cheaper than Australia? Nothing to do with closing coal fired generators before a reliable cost effective alternative is in place? Nothing to do with having to repurchase gas to prop up the depleted domestic market because of the gas companies failure to ensure enough domestic supply? Nothing to do with the refusal to even contemplate nuclear energy?

    Well that’s alright then. Just so we know. I’ll spend the next month or so planning how to splurge the approximately 54 cents I will ‘save’ on my next electricity bill so I don’t spend it all at once or in just the one place. If I save all the reductions, in about three years I should be able to splash out on a cup of coffee!

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      Well said KSS and so true.

      The gas fiasco is a stunning bit of stupidity or treason.

      You’d swear Dumb and Dumber are working for foreign corporations.

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      Yes – well put, KSS – be aware of your orientation on those issues and how they impact on Australia.

      All the ‘righties’ here love to accuse me of being a ‘leftie’ … since when is an ardent nationalist a ‘leftie’? Putting this nation and its people first these days makes you a deluded leftie, it seems….. let’s stir heemie into a semblance of life (Igor – hit the third switch) – it’s more of a national socialist position.

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      Those issues may be beyond government control now – but they were part of the planning for the policy introduction, so there is no way out of responsibility of government for cost increases due to their policy.

      Their ‘think tanks’ would have known from offshore experience and previous experience with roads and such that cost sky-rocketing was inevitable, and for the same reasons – funding lavishly the lifestyles of themselves, families and cronies.

      Government ‘share-owning’ in these ‘ventures’ is just another way of milking revenue from the consumer public without being accountable, and the further reality is that they have indemnified their mates from fiscal disaster (no matter how created) by guaranteeing the ‘contracts’ handed out in the ‘privatisation’ process.

      Worst case scenario is that a ‘company management’ self-destructs the ‘company’ Gordon Gecko style (does a Rodney Adler), while those responsible retain their pay and their assets accrued and their ‘super’ scheme, and the government bails them out by paying out their contract to the tune of several billions. The only losers in such a situation are the real investors and unsecured creditors, who may have been foolish enough to give money to these pirates.

      It follows then that in order to protect its own ‘share-holding’ and to forestall any ‘collapse’ that will cost billions – the government is tied by chains of gold to any cost rise demands put forward by these ‘privatised ventures’.

      Also – similarly to the cancers of affirmative action and a few other things that have invaded the body corporate of Australia – this form a cancer is near impossible to remove without killing the patient – and was designed that way, like some virulent computer virus that will destroy the host if the host tries to remove it.

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      KSS – originally it was about upgrading the poles and wires so that the asset could be flogged off. That was when Greg Hunt was bleating his propaganda into the right wing media microphones multiple times a day…and getting it to air. What a surprise…..”You have high electricity prices because of the Carbon Tax”. Remember it well, and the dumb public bought it.

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      Aye – The Dread Privateer Blackbaird……

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      Spot on KSS

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    Remember those yellow signs on the power poles that warned us this would happen. They did not lie. Privatisation that demands excess profit and also many retailers all needing CEOs and offices and whole teams of salespeople will always cost more and more and more.

    Wasn’t it great when we owned and operated our own power providers?

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      Don’t tell me about it I got abused during last state election by Liberal supporters as I dared question them about their statement that power would not increase.

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      Yes OG. Dumb=LNP and Dumber=ALP. Stupid mistake after mistake costing everyone but the very wealthy far too much of their hard earned.

      People are getting angrier about all these price rises for no good reason other than mismanagement.

      And the power stations are going to ruin from lack of any proper maintenance.

      The RWNJs can fuss all they want about wage bills but the inability to manage power or prices is the real reason Industry is bailing out of Australia and it’s a damn shame in a country with huge supplies of coal and gas and iron ore and lithium etc etc. We can’t even keep the smelters running and that was something primitive people managed back in the bronze age for crying out loud.

      Rant over but I am really disgusted at the stupidity of it all.

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      Drove through Kurri Kurri Saturday on way to Hunter Valley Wine Festival (I was the driver) – smelter not operating.

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      I recall seeing demonstrations in Canada against the ‘global economy – and thinking then what a rabid bunch of leftie rat-bags they were….. how wrong I was……

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      Information is suppressed but occasionally seeps through TREBOR. But don’t expect the truth to be routinely aired like the blatant lies.

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    Back when electricity supply was state owned in NSW, the government of the day added a charge to cover the actual supply, not the cost of electricity but just for the privilege of having electricity supplied. When all of these different suppliers came into the picture, that insidious government grab for money for doing nothing has persisted and is current $0.88¢ per diem. Does any of this ever get looked at by those responsible for “keeping the bastards honest”?

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      Old Man they used to charge extra for the first so many units so that charge was in the rates. They then took it out of the rates. I know this for a fact as I wrote the computer program to change it over to a separate charge. They also had a tolerance on that charge in that if your bill fell with in a range of days it was the same. However that was deemed wrong and it had to be then billed on the actual number of days. The tolerance was used as it was simply easier for people to work out their bills. However the do goodies though otherwise.

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      It was still cheaper by orders of magnitude, OG,… can’t deny that.

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