by Chris Becker
Captive supply is a wonderful thing. After having bought public power grids for pennies, then spending a brazillion gold plating them, and then lifting prices across the board, power companies are now complaining that some of their customers are leaving the grid.
But don’t worry they will just increase the price and more upper middle class families will follow, perpetuating the cycle while poorer families swallow the highest household energy prices in the world. Profits won’t budge much. Executive bonuses will continue. Nothing to see here.
From the ABC:
Victorian power company AusNet Services has warned the increasing number of customers choosing to disconnect from the grid will push up the cost of electricity for those still on the network.
The company is giving evidence to a federal parliamentary inquiry into modernising the electricity network, which is sitting in Melbourne today.
“One of the chief concerns in relation to grid modernisation is that new developments in the electricity sector could leave some customers behind, forced to shoulder an increasing share of the costs,” it said.
The submission points to “grid defection” as an issue which may drive up costs for customers, as more and more households make the switch to solar and battery storage systems:
He denied the company’s position was just about protecting its interests.
“This isn’t sort of about us feathering our nest, or stopping people from doing what they want, but making sure when they do what they want it’s for the benefit of everybody.”
I think that’s called the common interest. Like having a cheap monopoly supplier of power using energy sources that the public want – solar, gas and wind.
This is all a waste of time until power companies are re-nationalised and the grid re-invented from the ground up.
This country should have the CHEAPEST household and business power bills in the world.
Its a clear market failure. Electricity markets don’t work when captive suppliers and energy cartels band together to gouge households and businesses.