While Chicken Chalmers fiddles, energy burns

Monday 30 January 2023

While Treasurer “Jim” Chicken Chalmers has so much time on his hands he can pen 6000 words of absolute mush about market restructuring, his energy reforms are not working as intended.

The electricity futures market is still pricing 100% gains in 2023, enough to add 2% to CPI with spillovers:

The underlying fuel price caps should be delivering prices around $60MW/h. Instead, we’re averaging near $85MW/h in real-time:

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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.