With Morris Iemma due to meet with the ALP administrative committee next week, after previously attempting to smooze State President Bernie Riordan, I would like to remind Iemma, Costa, Sussex Street and the Coalition Opposition that voters are still watching their manoeuvres.
Thus far, none of those pushing for the sale of NSW power assets (or those Nationals currently pretending to oppose the idea) have been able to satisfy that the following will not come to pass.
Dozens of governments have embarked on the pathway to electricity deregulation and privatisation since the mid-1990s. It has become the accepted wisdom amongst governments and opinion leaders despite the consequent price rises and disasters that have followed in its wake: the series of blackouts that have been experienced from California to Buenos Aires to Auckland; the government bailouts of electricity companies that have been necessary in California and Britain; the need for electricity rationing in Brazil; and the fact that it has become too expensive for millions of people from India to South Africa.
Electricity deregulation and privatisation is referred to as ‘liberalisation’ by its advocates who use the term to disguise what is in essence a massive shift of ownership and control of electricity from public to private hands, in the name of economic efficiency and in the cause of private profits. ‘Liberalisation’ has meant that maintenance teams that were once fully staffed have been dramatically cut leading to frequent equipment failures. It has meant that privately owned electricity conglomerates are able to blackmail governments into bailouts and high prices with threats of blackouts. And it has meant that the planning function of electricity authorities that once ensured adequate generating reserves for times of peak demand, and kept infrastructure up to date in developed countries, have been abandoned to market forces. Because of market forces electricity prices are based, not on the cost of production, but on how desperately consumers want electricity and this has led to sky-rocketing prices whenever private companies have been able to limit supply in times of high demand.
The privatisation of electricity is not something that citizens have demanded nor wanted. In general, there has been very little public participation in electricity reform decisions and as the consequences are observed, there have been many bitter protests against electricity privatisation.
[From Sharon Beder,'Critique of the Global Project to Privatize and Marketize Energy', June 2005, pp. 177-185]
Thus far, none of those pushing for the sale of NSW power assets (or those Nationals currently pretending to oppose the idea) have been able to satisfy that the following will not come to pass.
Dozens of governments have embarked on the pathway to electricity deregulation and privatisation since the mid-1990s. It has become the accepted wisdom amongst governments and opinion leaders despite the consequent price rises and disasters that have followed in its wake: the series of blackouts that have been experienced from California to Buenos Aires to Auckland; the government bailouts of electricity companies that have been necessary in California and Britain; the need for electricity rationing in Brazil; and the fact that it has become too expensive for millions of people from India to South Africa.
Electricity deregulation and privatisation is referred to as ‘liberalisation’ by its advocates who use the term to disguise what is in essence a massive shift of ownership and control of electricity from public to private hands, in the name of economic efficiency and in the cause of private profits. ‘Liberalisation’ has meant that maintenance teams that were once fully staffed have been dramatically cut leading to frequent equipment failures. It has meant that privately owned electricity conglomerates are able to blackmail governments into bailouts and high prices with threats of blackouts. And it has meant that the planning function of electricity authorities that once ensured adequate generating reserves for times of peak demand, and kept infrastructure up to date in developed countries, have been abandoned to market forces. Because of market forces electricity prices are based, not on the cost of production, but on how desperately consumers want electricity and this has led to sky-rocketing prices whenever private companies have been able to limit supply in times of high demand.
The privatisation of electricity is not something that citizens have demanded nor wanted. In general, there has been very little public participation in electricity reform decisions and as the consequences are observed, there have been many bitter protests against electricity privatisation.
[From Sharon Beder,'Critique of the Global Project to Privatize and Marketize Energy', June 2005, pp. 177-185]
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