Smart grids without the dumb policy

The debate over electricity prices fails to recognise that the main costs power companies are passing onto consumers are fuelled by the investements needed to upgrade ageing infrastructure.

Prime Minister Julia Gillard has once again reaffirmed her commitment to force electrify companies to lower their prices. But as Paul Budde contends, higher electricity prices aren’t stemming from a lack of political intervention. They come from the costs electricity companies have to pay in order to renew our aging infrastructure.

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