election in the wind, page-13

"LOL. But the money goes to most householders to cover the additional cost. Furthermore the energy companies are not as I understand it able to just increase charges when they like. They need to gain approvals under their licence to operate"

I believe that you are indeed correct. However (at least in Victoria) the regulated price is based on the weighted cost of capital. Ergo when the cost goes up through no fault of the utility company the tariffs go up.

Upgrades (that are requested by the state) to existing plant are separate from these arrangements. The utility company can put in a normal tender for the upgrade (which includes their idea of profit) and win the work.

Pity Telstra was not quite as smart as the utility companies when it was set up.