The Canberra Times brings word that ACTEW is responding to the regulator’s refusal to let them charge more for electricity with plans for a series of rolling blackouts.
Two pieces of pricing incompetence are at work here:
1) Underpriced consumer electricity has lead to over-consumption with no incentive for investment on the part of the electricity companies.
2) Underpriced water has meant that water which might have been kept for hydro generation has been wasted in the desert over the last seven years growing cotton. Nearly as bad our coal plants have had no incentive to reuse the water they consume as coolant and are now running out of water to keep the turbines spinning.
And so, once again, willful neglect of economics takes us to back to the dark ages.
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