Declining demand, rising prices – is there something wrong?

Why on earth are we seeing such large increases in power prices when demand hasn't increased all that much? The Productivity Commission appear to have answered that question.

The Productivity Commission has released its final report on electricity network regulation. It provides a wealth of information explaining how we have ended up paying vastly more for electricity networks, while growth in peak demand has almost stagnated.

At the same time as the Commission released its report, AEMO downgraded its expectations of demand growth across the NEM for this year. These downgrades come on top of some very large downgrades in the prior year.


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