Economics & Deregulation / Energy
Energy is a vital area of the Australian economy, but it is constantly threatened by regulation and taxation. The Institute of Public Affairs examines the regulatory framework governing the energy sector and shows how deregulation can ensure that firms are given every opportunity to operate efficiently and that consumers receive the full benefits of a deregulated energy market. Environmental policies are also likely to challenge the vitality of this important sector.
The IPA also runs the Energy Forum, which brings together firms in the electricity and gas supply industry, all of which share a common view that privatisation and minimal levels of regulation will best serve the community. It provides a platform on which major industry leaders can test their views and subject them to informed criticism. Energy Forum papers are available here. For more information about the Energy Forum, please contact Alan Moran.
The Parer report was fundamentally about the electricity market. Gas and to an even greater extent environment and regional issues were tacked on.
Private ownership uses the same insights that Chadwick discovered two centuries ago. It is based on incentives and, harnessed with competition to meet market needs, is the most powerful means of promoting efficiency and high living standards.
The electricity and gas markets are fundamentally commodity markets. But they differ from other commodity markets in two major respects.
A Speech to the Utilicon TasPower Conference
Concerns have been expressed around the world that the newly opened electricity markets have failed to be sufficiently competitive.
Opening up electricity and gas markets to competition forces retailers to seek better ways of meeting the needs of customers more cheaply and ensures that cross subsidies are made known.