Australia stares down an electricity ‘death spiral’

Falling electricity consumption means higher prices for consumers as costs are spread among a lower customer base. Policymakers must deal with the consequences of falling demand before it’s too late.

Australia’s electricity transmission and distribution network businesses are facing some unprecedented challenges and the answers are neither obvious nor painless. A history of poor regulation is going to make life more difficult for what were supposed to be low-risk and low-return, regulated monopoly businesses.

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