In this opiniated piece, IES CEO, Hugh Bannister, gives his perspective on how the National Electricity Market (NEM) got to be in such poor shape. Heavy handed government intervention is the evidence of that failure, but the article argues that it is persistent and wilful government failure in the administration and regulation of the NEM that has led inexorably to its current sorry state.
While popular debate rightly focusses on the renewable energy as posing a challenges for system security and reliability, the drivers for high retail prices are many and varied, and very little to do with renewables. At the core, though, is a philosophy that has sought to profit from privatising the industry without putting in place arrangements that would ensure success from the consumer’s perspective.
Hugh concludes the paper with a 9 Point Plan for recovery. The details of what a recovery might look like require further discussion and debate. This challenge will be taken up in future Insiders.