The contribution of monopoly network service providers to electricity price rises in the NEM (2012)



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Bruce Mountain, Director, Carbon Market Economics (CME) examines the outcomes, reasons and possible solutions to the price rises in the National Electricity Market. Released November 2012.
  BMountain2012
   

Executive summary

This paper examines the contribution of monopoly electricity network service providers (NSPs) to electricity price rises in the National Electricity Market (NEM). It describes the outcomes that have been delivered. It then focuses on explaining why government owned NSPs have increased their capital expenditures as much as they have. Finally it suggests ways that prices may be reduced and the efficiency of the industry improved.

Solutions

In this paper Bruce makes recommendations around:

  • Divestiture;
  • Regulatory reform; and
  • Consumer empowerment.


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