"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong." Richard P. Feynman

Sunday, May 22, 2011

Power Bills forecast to Double says Supplier.

TRUenergy , a four billion dollar player in Australian energy market has predicted that power prices will double in the next six years after a carbon price is introduced. Shortage of base load power is looming while Gillard and the Greens are romancing with "green power " which can never be used as base load. The lead time for new power stations is considerable and capital is scarce in the current uncertain environment.

One of Australia's largest home and business electricity suppliers, TRUenergy, has warned that household power bills will double in six years after a carbon price is introduced and uncertainty over its implementation might lead to power shortages.
The gas and electricity giant's chief executive, Richard McIndoe, said uncertainty over what the long-term carbon price might be has stalled capital investment in the industry and halted construction of new power stations.
"Capital is not being invested so we haven't seen new power stations built," Mr McIndoe told ABC TV today.
Electricity regulator Australian Energy Market Operator (AEMO) had forecast shortages of baseload power for Queensland in 2013 and 2014, with Victoria and NSW experiencing shortages in 2015 and 2016, he said.
"Given the timeframe for building new power stations, we're concerned that we need that certainty today so we can build power stations to meet that coming gap in the market," Mr McIndoe said.
He said that gap had resulted in electricity prices rising by 40 per cent in the past three years as a result of network investment.
Rising fuel and gas prices would cause them to increase by another 30 per cent over the next three years, Mr McIndoe said.
The mooted carbon tax of between $20 and $25 a tonne of emissions would not change industry behaviour but would double electricity bills for households over six years given the 30 per cent rise, he said.
"A carbon price will add another $300 per household on top of that, so for a six-year period you're seeing an effective doubling of electricity prices per household with no tangible benefit," Mr McIndoe said.

H/t Trevor 

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