Energy Market Dynamics - Australia

 

What is still happening to the energy supply market across Australia?

1.  Huge  multinational energy corporates pay less in wholesale prices for gas and electricity resources from Australia, than retail consumers do within the nation - partly due locked in long term contracts allowed.

2.   Aging coal plants that are due to close soon are symbolic of socio- political issues in regions that have prospered in the past but now struggle economically to face a changing future.

3.    Renewable energy sources are not enough at this stage to replace coal  and traditional ones in sustaining supply to an inceeased population.

4.  The energy market in Australia has been totally outsourced by the Canberra Federal government to so called free market players in the form of only a handful of wholesalers like Aus Grid and Endeavour Energy - allocation has been made for monopoly by geographical areas.

Only the Western Australian state government has been wise and practical enough to ensure their domestic customers get enough supply before allocating supply to overseas wholesalers.

Just like any wise government would take care of its own people first.....

5.   Wholesale private players within Australia then farm out energy supply allocation to retail players like Origin, AGL, Energy Australia, etc.
Such retail players are huge in domination of the domestic market, have become agressive to consumers in utilities  and also said to have interlocking non- Australian interests.

There is an unwillingness by government in Australua to implement measures like price ceilings and caps on charges for essential goods and services. 

7.   Like for mortgage loans, consumers can choose between variable and short term fixed rates for daily supply and usage.

The few players at wholesale supply level already make it possible for them to likely and allegedly squeeze retail players fighting for profit margins in a market for essential utility needs of everyone.

8.  Australia is a major producer of energy resources, yet its residents do not enjoy the benefits of such bounty, due to potential
and alleged market manipulation, lack of strategic and forward looking planning by governments,  poor political leadership for many years and alleged strong interlinks between big business and those in power.

9.   No critical reserve of gas and electricity resources are maintained nationally as part of disaster planning and national strategy.

Note that Australian national emergency reserves in petroleum are kept in the USA. Makes one think!

10.   Although it is easy for retail customers like me to change energy providers (portability without exit penalties), most properties in Australia are not built in an energy efficient way.

#yongkevthoughts

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