When the eastern states’ National Electricity Market was formed in the late 1990s, Australia had the lowest retail prices in the world along with the United States and Canada. South Australian households are now paying the highest prices in the world at 47.13¢ per kilowatt hour, more than Germany, Denmark and Italy which heavily tax energy, after the huge increases on July 1.
In July, the Elon Musk agreed to build the world’s largest lithium ion battery in order to secure South Australia’s power supply in the wake of a statewide blackout. In an interview on Channel 9’s 60 Minutes last night, Mr Musk said he was unaware of the politically-charged conflict and bickering between the states and the Commonwealth over Australia’s future energy sources and power costs that he was now caught in the middle of.
The pricing plans are complicated and there is little competition from the few suppliers. There was also the elimination of coal and other powerplants before the adequate renewables were in place.