Engineering with Rosie looks at The UK's Stunning Grid Flip From Coal Giant to Clean Energy Leader (feat. @JustHaveaThink).
Engineering with Rosie looks at The UK's Stunning Grid Flip From Coal Giant to Clean Energy Leader (feat. @JustHaveaThink).
According to Ronald Brakels at the SolarQuotes blog, yes they are: Here’s Why EV Batteries Are Cheaper & More Reliable Than Home Batteries.
| 2006 | 2016 | Increase | |
| NSW | $918 | $1,922 | 109% |
| VIC | $ 841 | $1,837 | 118% |
| QLD | $890 | $2,102 | 136% |
| SA | $1,110 | $2,080 | 87% |
| WA | $855 | $1,582 | 85% |
| TAS | $1,317 | $2,181 | 66% |
| ACT/NT | $1,061 | $1,785 | 68% |
In the past few years, our electricity prices have doubled. While the media has feasted on the likes of pink batts, Peter Slipper and Craig Thomson, the astonishing story behind these price hikes has been all but ignored. And yet, it may be one of the greatest rorts in Australia’s history.
Since 2009, the electricity networks that own and manage our “poles and wires” have quietly spent $45 billion on the most expensive project this country has ever seen. Allowed to run virtually unchecked, they’ve spent vast sums on infrastructure we don’t need, and have charged it all to us, with an additional fee attached. The spending was approved by a federal regulator, and yet the federal government didn’t even note it until it was well underway.
Let’s be clear: this is the single biggest reason power prices have skyrocketed. According to the federal treasury, 51% of your electricity bill goes towards “network charges”. The carbon tax, despite relentless propaganda to the contrary, is small beer, comprising just 9%. The rest of your bill is carved up between those companies that actually generate your electricity (20%) and the retailers who package it up and sell it to you (20%). The Renewable Energy Target is such a small cost impost, the treasury’s analysis doesn’t even include it; the Australian Energy Market Commission says it makes up around 5%.
Thanks to the networks’ infrastructure binge, we now pay some of the highest prices in the developed world. The impact has been felt most keenly in New South Wales and Queensland, where the networks are government owned and network charges have accounted for two thirds of the price increases.
But hang on, is this guy saying the price of electricity has gone up because demand for it has gone down? Isn't it supposed to be the other way round? Isn't a fall in demand supposed to lead to a fall in the price?Read the whole article.
Well, assuming no change in supply, yes it is. So you're right to be to be puzzled. The relationship I've described between price and demand is, as an economist would say, ''perverse''.
But why? Because, as Garnaut explains, we've stuffed up the deregulation of the electricity market. (Moral: as we're being reminded by the plan to ''deregulate'' university fees, if you deregulate or privatise without knowing what you're doing you can make things worse rather than better.)
Before the reform process began, each state had its own, government-owned electricity monopoly, with little trade between the states. From the late 1980s it was decided to break the integrated state monopolies into their component parts - generation, transmission, distribution and retailing - and form one big eastern Australian electricity market with as much competition and as little monopoly as possible.
The power stations were separated into individual businesses - some of which were privatised, particularly in Victoria - and made to compete in a highly sophisticated ''national'' wholesale market for electricity. Garnaut says this has worked well, with competition keeping the wholesale price low in response to the reduced demand.
But transmission (high-voltage power lines) and distribution (local poles and wires to the premises) are natural monopolies. That is, it's not economic to have more than one network. So whether these businesses are publicly or privately owned, the prices they charge have to be regulated to prevent them overcharging.
Trouble is, Garnaut says, we've done this by fixing the maximum rate of return the businesses are allowed to earn on the capital they have invested. Economists have known for 60 years that this always causes problems because it's so hard to pick the right rate of return.
If it's too low it leads to underinvestment in the physical network, causing blackouts. If it's too high, however, it leads to overinvestment in the network at the expense of business and household customers.
But as well, when monopoly businesses that are guaranteed a certain rate of return suffer a loss of demand, the regulator has to allow them to restore their profitability by raising their prices.
As a general clarification, ounce for ounce, coal ash released from a power plant delivers more radiation than nuclear waste shielded via water or dry cask storage.
Governments are falling badly behind on low-carbon energy, putting carbon reduction targets out of reach and pushing the world to the brink of catastrophic climate change, the world's leading independent energy authority will warn on Wednesday.
"The world's energy system is being pushed to breaking point," Maria van der Hoeven, executive director of the International Energy Agency, writes in today's Guardian. "Our addiction to fossil fuels grows stronger each year. Many clean energy technologies are available but they are not being deployed quickly enough to avert potentially disastrous consequences."
On current form, she warns, the world is on track for warming of 6C by the end of the century – a level that would create catastrophe, wiping out agriculture in many areas and rendering swathes of the globe uninhabitable, as well as raising sea levels and causing mass migration, according to scientists.
Electricity companies are preparing to shift to a green future by investing in the industry of energy solutions.Meanwhile Ben Harvey looks at why Western Australian power bills are going up and up in The shocking truth about your bill:
A SMARTER, greener future for energy use may be coming too slow for some, but it is coming nonetheless. Eventually our dirty old electricity grid may provide little more than back-up power, giving us plenty of scope to retire ageing coal-fired power stations.
It's an inconvenient financial truth, but if you think your electricity bill is big at present you are, pardon the pun, in for a shock.
And it's an inconvenient political truth that there is no white knight waiting to save you - we are going to get screwed on power prices regardless of whether the ALP or the Liberals are in office.
Colin Barnett is doing a very good job of apologising for raising prices and is gently putting out the message that things might not be so bad in the future.
Eric Ripper is doing an even better job of making everyone think that life will be easier if you vote for him in 2013.
Both these men - who are generally decent and trustworthy - are full of it: prices are going up far higher than either is letting on.
Both want to ensure that our bills cover the cost of delivering electricity to our houses.