Election investment freeze begins

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It’s a long way out but not soon enough, via The Australian:

Two of Australia’s biggest energy companies say they will delay investment in new generation capacity that could help drive down prices until there is more certainty around the direction of policy, after Scott Morrison’s “big stick” legislation to break up retailers who charged too much for power was stalled in parliament.

…Origin Energy chief executive Frank Calabria said it would be very difficult to invest with the legislation in play.

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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.