Taking the heat out of power prices

With all the talk about electricity bills there is a unique opportunity for reform. But as the example of WA shows, if governments overreact and restrict the use of markets, it could make things worse.

AGL spat the dummy a few days ago claiming it would pull up stumps on investment and marketing in South Australia because the state regulator had decided to adjust regulated tariffs to more closely reflect wholesale electricity market prices. Origin has made similar complaints about Queensland regulator decisions.

At the same time we’ve had Matthew Warren, head of the Energy Supply Association, valiantly trying to defend network businesses from reform, claiming this will undermine investment confidence. 

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