FY23/24 Electricity are set - even if it is draft, nothing will...

FY23/24 Electricity are set - even if it is draft, nothing will change it much - UNLESS Nationalisation of all electricity retailers.

We should be keeping a close eye on FY24/25 Future prices which are increasing and therefore imply further DMO price rises in later years on top of what has been forecast. Using pool prices and calling out energy prices are falling is a fallacy as most electricity load is sold on fixed base contracts.

Talks of State governments setting up Electricity retailers with zero energy procurement or legacy supply contracts means they will price at market – i.e. at the high point - at best it is a political (comical) strategy.

These State governments are thinking back to the days where they controlled 90% of baseload electricity with their state funded coal power stations. Only government that may be able to do this is QLD but with it’s plants blowing up left, right and centre, they don’t have risk management competencies for this.

In addition, they are under significant fiscal pressure due to higher interest expense on their debt so setting up a retailer and subsidising it for billions of dollars will not work.