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The privatisation of Australian electricity: Claims, myths and facts

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  • Lynne Chester

Abstract

Australia has one of the most ‘liberalised’ electricity sectors in the world. The sale of government-owned electricity companies has contributed to that liberalisation and a quarter of the proceeds of one of the world’s largest privatisation programmes. In 2014, the state governments of New South Wales and Queensland announced further electricity privatisations if re-elected. Advocates claim private ownership will mean more productive investment, lower costs leading to more efficient operations, lower prices for all consumers and better market functioning without government interference. Opponents contend that the true value of government businesses is not being realised at sale, retention can achieve returns greater than those from a sale, and that follow sale, prices will rise and jobs will be lost. This article demonstrates that the claims of either lower or higher prices, of job losses and of more efficient operations are tantamount to being myths of privatisation not borne out by reality.

Suggested Citation

  • Lynne Chester, 2015. "The privatisation of Australian electricity: Claims, myths and facts," The Economic and Labour Relations Review, , vol. 26(2), pages 218-240, June.
    • Handle: RePEc:sae:ecolab:v:26:y:2015:i:2:p:218-240
    DOI: 10.1177/1035304615574973
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    References listed on IDEAS

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    Cited by:

    1. Chester, Lynne & Elliot, Amanda, 2019. "Energy problem representation: The historical and contemporary framing of Australian electricity policy," Energy Policy, Elsevier, vol. 128(C), pages 102-113.
    2. Nepal, Rabindra & Foster, John, 2015. "Electricity networks privatization in Australia: An overview of the debate," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 12-24.
    3. Rabindra Nepal & Flavio Menezes, 2017. "Regulatory Reforms in Small Energy Systems: Experience from Australia's Northern Territory Electricity Market," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 300-316, September.
    4. Nelson, Tim & Dodd, Tracey, 2023. "Contracts-for-Difference: An assessment of social equity considerations in the renewable energy transition," Energy Policy, Elsevier, vol. 183(C).
    5. Nelson, Tim & McCracken-Hewson, Eleanor & Sundstrom, Gabby & Hawthorne, Marianne, 2019. "The drivers of energy-related financial hardship in Australia – understanding the role of income, consumption and housing," Energy Policy, Elsevier, vol. 124(C), pages 262-271.
    6. Rabindra Nepal & Flavio Menezes, 2016. "Small Energy Markets, Scattered Networks and Regulatory Reforms: The Australian Experience," Discussion Papers Series 561, School of Economics, University of Queensland, Australia.

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    More about this item

    Keywords

    Australia; electricity; privatisation;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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