Evil always wins through the strength of its splendid dupes. - G. K. Chesterton
Massive price rises in electrcity have occurred across all states, the inevitable result of pointless green energy initiatives as well as a lack of private investment in coal due to heavy government regulation and uncertainty about coal's future under an Emissions Trading Scheme or carbon tax. Despite Australia's abundant energy reserves in coal and uranium, energy prices have increased by about 60% in Sydney and Melbourne, over the past 5 years. And it is estimated the introduction of a carbon tax will cause a further doubling of electrcity prices. Of course, fixing the problem is as simple as scrapping all state green programs and eliminating the possibility of any future tax on carbon. And it wouldn't cost the taxpayer a cent. |
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NSW Premier Kristina Kenneally is under
Time to rise base connection prices
What many people don't understand with electricity and water is that the price is all about distribution. This means when there is a drought and we use less water, the price of water has to go up dramatically, because the network costs remain the same. The same is also true of electricity. The more green people are, the less power they use, and the more the price of electricity has to go up to get the distribution costs back, which again remain the same.
In QLD the average daily use of water fell from 600L/p to 280L/p. Water has gone from 90c/1000L to $3.60/1000L. Likewise the total energy use per custom has actually dropped from all this going green stuff, this has driven the cost of power up.
At the end of the day the government cannot escape the effects of a market, no matter how inefficient they are. The most they encourage water and power saving, the more expensive it will get, and the more people will drop off the grid, which will only accelerated the problem. As energy storage technology increase I fully expect the power grid to eventually collapse.
The only way out is for the redicuilous low 'conncetion' costs to skyrocket. Water and power should be a 90% fixed price cost of probably $800 per quarter per house/building. At the moment high users of energy subsidies lower users of energy by paying rediculously high costs per unit instead of a fair conncetion price and a low price per unit.
Can you imagine if internet provides charged $1 for connection then $10 per gigabyte? The market drives this out until its $100 for a connection and $1 per gigabyte for example. The same needs to happen in the water/power industry.