CCE 4.88% 4.3¢ carnegie clean energy limited

Musk moving in, page-18

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    The problem with privatisation is that the network owner needs to make a profit, and that the contract needs to reflect this. So, while the seller (state govt) may make a lot of money up front, it is inevitable that power prices will rise more than they would otherwise so the new private owner can make a profit. Just need to look at the "gold plating" of privately-owned networks in other states and the effect this has had on power prices!

    So selling a power company may be good for the state govt budget in the short term, it is likely bad for all power consumers (private, public and business) in the long term, and thus bad for Governments (higher power prices = greater costs for businesses = lower profits = lower taxes for Govt to collect).

    I don't think renewables and batteries will reduce the need for transmission lines (except perhaps in some "edge of network" remote locations, but it can certainly reduce the need to upgrade the capacity of existing transmission lines, or reduce the size of new transmission lines.

    Bottom line is that the aim of a publicly owned utility is to provide a service to the public, the aim of a privately-owned utility is to maximise its return to shareholders.
 
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