- Joined
- 3 July 2009
- Posts
- 27,423
- Reactions
- 24,210
I believe the problem with increased price is the result of the state owned enterprise being forced to increase prices dramatically in order to show big profits so that the state received a higher sale price of an asset. Then the companies were allowed to increase prices further. Then again the charges associated with distribution, poles and wires as they say, were increased to establish a high value there as well. All gets down to selling off the farm to pay off the bankcard.
No, nothing has been sold, from memory when SECWA was broken up on a brain fart.
Generation couldn't make money, because they were always the generator of last resort, private generators were paid to sit there whether they were required or not.
Barnett, from years ago was minister for energy pre the break up and was always opposed to privatisation.
The situation after the separation of generation, distribution and retail, from memory, left generation with all the residual debt.
To encourage private generation, investors were offered capacity payments to install generation, this didn't require them to operate just be available to operate.
The problem with that was government generators, were still required to generate if required, there was no such requirement put on the private generators(from my knowledge).
Now we have have situation where the Government has no option other than shut down their plant, to force the private generators to produce.
Well that is my understanding.
But you sound as though you have some further knowledge I'm not aware of.