SA to nationalise power market?

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Big news here:

Federal and state energy ministers will today be told by the Weatherill Labor government that it will “retake control” of South Australia’s fragile power network so blackouts “do not happen again”.

The Weatherill government, which faces an election in just over 12 months, maintains last week’s forced power cut to 90,000 homes and businesses was “completely unnecessary and entirely avoidable”.

…“We are going to use every inch of our authority, everything we can, to retake our sovereignty…We believe that renewable energy, mixed with gas can meet (capacity) demands.”

…Premier Jay Weatherill and Mr Koutsantonis blamed the Australian Energy Market Operator and private distribution company SA Power Networks for a “litany of errors” that led to blackouts last week during a heatwave.

Hard to disagree with that:

erwyqty

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I’ll reserve judgement until we see what SA has in mind but given Do-nothing Malcolm’s appallingly political response they no doubt feel they have little choice in acting unilaterally.

Looks like the fossil fuel gougers that refused to support the network have pushed too far.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.