Monday, 19 February 2018

Another Government in Australia moves away from the Electricity market and moves to "Re Regulate" electricity prices for the States citizens

In an important move the Australian State of Tasmania , has herald its intent to move away from the National Electricity market and the National Electricity Grid

It will move to stop electricity moving across to the National Grid from Tasmania, if the Conservative political party, are re elected to run the State at the upcoming elections in March .

The policy also states - 

"The NEM Exit will remove the linkage to (the State of) Victoria and the recent high energy prices and volatility .

Tasmania’s progress towards 100 per cent self-sufficiency through additional on-island generation will continue to put downward pressure on electricity prices. 

During the transition period the CPI cap for prices in 2018-19 and 2019-20 will be managed through a Wholesale Electricity Price (WEP) Order and through Hydro Tasmania’s contract pricing.

Electricity prices in this state have increased by 65% 

Lowered the prudent water management levels during the carbon tax period that increased the energy security risk for the state. Called for power rationing during the extreme energy issues faced in 2016 rather than supporting the Government’s successful Energy Supply Plan. 

It further States they will - 

 Break away from mainland electricity pricing to force down power prices by 7-10% 
 Deliver the lowest regulated electricity prices in the nation by 2022 "


Importantly the above move for a  " WEP " , is exactly what some Local Government Authorities have undertaken in Germany, as part of  "Re Municipalisation" and has been discussed a number of times before as a means of keeping families out of the contestable market and having a government regulated electricity price , in a number of countries 

Plus the reference to " Hydro Tasmania" , and contract price ... is also worth noting as "Hyrdo Tasmania"  is a State Owned Publicly Operated Electricity Generator , which is charged with managing the States Hyrdo Electric Scheme 

The increased role of Hydro Electricity, manged by the State has also been part of recent actions by the Australian National Government (Conservative) see http://gmpsiaprec.blogspot.com.au/2018/01/conservative-government-in-australia.html  as well as other articles at  http://gmpsiaprec.blogspot.com.au/search/label/Electricity that cover similiar pushes by PSI Affiliates in the Asia Pacific Region.

Additional back ground articles can be located the following media links - 

National Electricity Market ‘broken’ – Tasmania wants out: The National Electricity Market (NEM) is under fire from many quarters. A new parliamentary report has criticised many aspects of its operation, and now Tasmania’s Liberal Government has said that if returned to office after the 3 March election it will withdraw the state entirely from the NEM by 20121. Tasmania, which has abundant hydroelectric …

http://www.abc.net.au/news/2018-02-04/the-tasmanian-liberals-have-promised-to-reduce-power-prices-by-/9394516

http://theconversation.com/the-national-electricity-market-has-served-its-purpose-its-time-to-move-on-80973

https://leadingedgeenergy.com.au/tasmania-national-energy-market/