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Electricity networks privatization in Australia: An overview of the debate


Nepal, R and Foster, J, Electricity networks privatization in Australia: An overview of the debate, Economic Analysis and Policy, 48 pp. 12-24. ISSN 0313-5926 (2015) [Refereed Article]

Copyright Statement

Copyright 2015 Economic Society of Australia, Queensland

DOI: doi:10.1016/j.eap.2015.10.001


The debate on electricity networks privatization in the Australian National Electricity Market is an important public policy concern but remains unsettled. This article reviews and compares the economic performance between the privately and state-owned electricity networks in Australia across three dimensions encompassing prices, quality and investment. The comparative analysis suggests that privately owned networks are not worse off than the state-owned networks in terms of performance. However, international empirical evidence indicates that the efficiency gains to consumers from electricity networks privatization will depend on the underlying regulatory regime and regulatory institutional framework. The long-term concerns on future investments, security of supply, climate change and economic regulation of networks will continue to prevail once the short-term efficiency gains from privatization are exhausted. These concerns imply that the role of the state will still be significant, although transformed, even after electricity networks privatization raising questions on the motives of privatization.

Item Details

Item Type:Refereed Article
Keywords:electricity, networks, privatization, regulation
Research Division:Economics
Research Group:Applied economics
Research Field:Industry economics and industrial organisation
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Nepal, R (Dr Rabindra Nepal)
ID Code:129887
Year Published:2015
Deposited By:TSBE
Deposited On:2018-12-20
Last Modified:2019-01-15

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