Given that renewables enables much more decentralised generation that will also require demand regulation and time-of-use tariffs, wouldn't you say electricity markets are necessary in the new grid? Although I would be OK with a default contract requirement that you mentioned.
solar - the power companies restrict the number of kilowatts they will pay for from solar on your roof, and stipulate the price. Solar produces while the sun shines and the power produced far exceeds the paid kilowatts. All the unpaid kilowatts are being provided to the power companioes for free and they sell it to others. And you probably pay for power that you produce your self.
The Australian Energy Market has created an asset market where consumers will continue to pay more more for electricity and gas and where the subsidies that go to consumers will end up as wealth with the mainly overseas private equity companies. The market is dysfunctional and unnecessary but we can easily transform it by requiring monopoly businesses to allow consumers to acquire shares and a voice in the monopoly supplies every time they pay for electricity or gas. Doing this is well within the power of the Australian Energy Market Commission and it could be achieved for very low cost and reduce the cost of electricity significantly. Of course the monopoly suppliers will resist it but they will not lose income and regulated profits. The difference is that consumers will acquire shares purchased from regular payments and a voice on the boards that make decisions. The system is a win-win for all because shares sold to consumers can be regulated to increase capital investment and the profits from those investments goes to new and old investors.
Given that renewables enables much more decentralised generation that will also require demand regulation and time-of-use tariffs, wouldn't you say electricity markets are necessary in the new grid? Although I would be OK with a default contract requirement that you mentioned.
solar - the power companies restrict the number of kilowatts they will pay for from solar on your roof, and stipulate the price. Solar produces while the sun shines and the power produced far exceeds the paid kilowatts. All the unpaid kilowatts are being provided to the power companioes for free and they sell it to others. And you probably pay for power that you produce your self.
Dishonest bastards.
The Australian Energy Market has created an asset market where consumers will continue to pay more more for electricity and gas and where the subsidies that go to consumers will end up as wealth with the mainly overseas private equity companies. The market is dysfunctional and unnecessary but we can easily transform it by requiring monopoly businesses to allow consumers to acquire shares and a voice in the monopoly supplies every time they pay for electricity or gas. Doing this is well within the power of the Australian Energy Market Commission and it could be achieved for very low cost and reduce the cost of electricity significantly. Of course the monopoly suppliers will resist it but they will not lose income and regulated profits. The difference is that consumers will acquire shares purchased from regular payments and a voice on the boards that make decisions. The system is a win-win for all because shares sold to consumers can be regulated to increase capital investment and the profits from those investments goes to new and old investors.