" Although demand for electricity in Australia is actually...

" Although demand for electricity in Australia is actually falling, power bills are poised to spiral again this year at double-digit rates in every state. And it is network costs – not the carbon tax (although that is a factor) – which are the principal culprit behind the surge in prices. "

This is the third investigation of this sort by the AER. It follows similar inquiries into overspending by transmission giants Transgrid in NSW and Powerlink Queensland.

Power industry insiders say that the gold-plating of the National Electricity Market (NEM) puts the controversial schools stimulus program in the shade. And it is not all taxpayers who get hit evenly, but pensioners in wintertime when they open that quarterly envelope to find a bill they can ill afford to pay.

There is a fundamental flaw in the structure of the power industry. Thanks to its regulated returns on assets, the more the power companies spend the more money comes through the door.

http://www.smh.com.au/business/goldplating-the-power-grid-20120705-21iv5.html

Too bad dropkick abbott pulled the wrong rein.

Raider