RAJ REPORT

Electricity PRIVATISATION —-State Government is PROFITING at the expense of Queenslanders —Private networks will operate more efficently—-I]n many places around Australia, the State Governments both own lucrative electricity assets and regulate parts of the electricity market. The comparison between the private and public owned utilities shows the States are doing very well financially out of this arrangement. Following the recent round of price increases, revenue for network enterprises wholly owned by State Governments is up fifty per cent over the previous five year period. In other words, revenue to the states went up nearly twice as fast as revenue to the private network operators.[92]

Leave a comment


 

 

Financial flows to state-governments

3.70      The Prime Minister noted that some state and territory governments have been profiting from price increases under current regulatory arrangements:

[I]n many places around Australia, the State Governments both own lucrative electricity assets and regulate parts of the electricity market.

The comparison between the private and public owned utilities shows the States are doing very well financially out of this arrangement.

Following the recent round of price increases, revenue for network enterprises wholly owned by State Governments is up fifty per cent over the previous five year period.

In other words, revenue to the states went up nearly twice as fast as revenue to the private network operators.[92]

3.71      A presentation recently delivered by the Energy Users Association of Australia (EUAA) Executive Director highlighted the discrepancies in distribution prices between private and government owned entities as shown in Figure 3.6.

Figure 3.6: Distribution prices[93]

Figure 3.6: Distribution prices

 

 

 

Part II – Parliament of Australia.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s