[LINK] Electricity prices

TKoltai tomk at unwired.com.au
Thu Mar 22 17:13:15 AEDT 2012



> -----Original Message-----
> From: Ben Elliston [mailto:bje at air.net.au] 
> Sent: Thursday, 22 March 2012 3:59 PM
> To: TKoltai
> Cc: marghanita at ramin.com.au; link at anu.edu.au
> Subject: Re: [LINK] Electricity prices
> 
> 
> > Well, curiously, the NSW Governments scheme that garnered 100+ 
> > megawatts of Solar by introducing a 60 cents per kilowatt-hour 
> > incentive, is probably the single biggest reason why we 
> have had such 
> > enormous price increases in the last two years.
> 
> I suggest you're saying "probably" because you haven't 
> checked.  The Solar Bonus Scheme, while I agree it was poorly 
> designed compared to feed-in tariffs elsewhere in the world, 
> is not the main cause of electricity price increases.  It's 
> peak demand, driven primarily by air conditioning loads.
> 
> Here's a good place to start: 
> http://www.climatespectator.com.au/commentary/australia-s-dirt
y-electricity-rip

Thank-you Ben, an excellent resource.

Unfortunately, the Gov disagree slightly.
NSW Electricity Network and Prices Inquiry (2010) 

http://www.dpc.nsw.gov.au/__data/assets/pdf_file/0005/118904/NSW_Electri
city_Network_and_Prices_Inquiry_Report.pdf

stated:

Quote/
Electricity prices have increased by about 43% in NSW over the last
three years.1 Prices are expected to rise by about this much again over
the next 3 years.2 Most of this impact will occur next year. Under
current arrangements it is possible that prices for some customers could
increase by up to 27% from 1 July 2011 alone.
/quote

And

Quote/
The drivers of price increases
The price increases have two main drivers. The biggest driver is network
costs: the more than doubling of annual capital expenditure and
increased operating expenditure for the NSW transmission and
distribution businesses since 2004. These increases are driven by growth
in the demand for electricity, replacement of ageing network assets,
enhanced reliability and performance standards and the escalation of
operating costs. This rapid rate of growth is set to continue for the
remainder of the current price period for the network businesses to
2013/14. At least 80% of the percentage increases in the IPART 2010
determination of regulated retail tariffs are attributed to increased
network charges.
The second most important driver is the introduction and expansion of
State and National government schemes to encourage the development of
renewable energy sources and the reduction of greenhouse gas emissions
from electricity generation. The costs of these schemes are recovered
from customers through their electricity bills; they are not funded by
taxpayers.
/Quote.

Although the report fails to provide any clues to enable me to ascertain
any difference between electricity consumers and taxpayers in the last
sentence.

Unless of course, the Solar initiative was so successful that there are
large groups of taxpayers that are no longer on grid consumers.  

I will never cease to be amazed at the nonsense of political speak.

TomK





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