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Electricity networks privatization in Australia: An overview of the debate
journal contribution
posted on 2023-05-19, 23:26 authored by Nepal, R, Foster, JThe 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.
History
Publication title
Economic Analysis and PolicyVolume
48Pagination
12-24ISSN
0313-5926Department/School
TSBEPublisher
Economic Society of Australia Inc.Place of publication
AustraliaRights statement
Copyright 2015 Economic Society of Australia, QueenslandRepository Status
- Restricted