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http://www.theage.com.au/environmen...ep-trading-with-565m-debt-20111219-1p2ju.html
It's not just the finances you need to worry about, the lights in Victoria and South Australia will go out if this plant closes. That's will, not might, if or maybe.
At the risk of a bit of personal chest beating and "I told you so", I've always thought that privatisation of the utilities would end up with a failure of the system and a government bailout. We've already seen it with things other than power, and it looks like we're getting close to that situation in the electricity industry.
If you want an effective power system that is technically efficient then put the whole lot back into a single utility for each state. We used to have the third cheapest electricity in the developed world (behind Canada and NZ, both of which are heavily reliant on cheap hydro-electricity) prior to the National Electricity Market and associated privatisations. There just wasn't a problem that needed fixing.
Details of the financial difficulty come less than a week after a federal government report predicted that, should the Loy Yang A plant be forced to close suddenly, wholesale electricity prices would nearly double, with an immediate flow on to household power costs.
possibility of the government becoming its lender of last resort
It's not just the finances you need to worry about, the lights in Victoria and South Australia will go out if this plant closes. That's will, not might, if or maybe.
At the risk of a bit of personal chest beating and "I told you so", I've always thought that privatisation of the utilities would end up with a failure of the system and a government bailout. We've already seen it with things other than power, and it looks like we're getting close to that situation in the electricity industry.
If you want an effective power system that is technically efficient then put the whole lot back into a single utility for each state. We used to have the third cheapest electricity in the developed world (behind Canada and NZ, both of which are heavily reliant on cheap hydro-electricity) prior to the National Electricity Market and associated privatisations. There just wasn't a problem that needed fixing.