RAJ REPORT

NSW Election proves Electricity must be PRIVATISED or QUEENSLAND FACES MORE debt——-Take rational measures on electricity privatisation issue——The obvious starting point for consumers is: would selling the businesses lead to electricity prices being higher than they would be under continued public ownership? Or would there be a decline in the quality of service, such as blackouts? In this particular case, the answers are more certain than usual: no and no. That’s because, the networks being natural monopolies, the prices they charge are controlled by the Australian Energy Regulator, which believes they’re already too high. Service quality is also tightly regulated. The regulator’s determination to get efficiency up and prices down suggests there will be job losses – in other states as well as NSW – whether or not the businesses are privatised.—–Ross Gittins The Sydney Morning Herald’s Economics Editor

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The obvious starting point for consumers is: would selling the businesses lead to electricity prices being higher than they would be under continued public ownership? Or would there be a decline in the quality of service, such as blackouts?

In this particular case, the answers are more certain than usual: no and no. That’s because, the networks being natural monopolies, the prices they charge are controlled by the Australian Energy Regulator, which believes they’re already too high. Service quality is also tightly regulated.

The regulator’s determination to get efficiency up and prices down suggests there will be job losses – in other states as well as NSW – whether or not the businesses are privatised.

This being so, the main issues of contention concern state government finances. The critics of privatisation stress that it’s no magic pudding: sell these profitable businesses and you lose the dividends they were paying the government, along with the equivalent of the company tax they were paying to the state (because state-owned businesses don’t pay tax to the federal government).

 

 

 

Take rational measures on electricity privatisation issue.

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