The Independent Inquiry into Future Security of the National Electricity Market (the Finkel Inquiry) issued its Preliminary Report in December 2016. The Preliminary Report has:
- inaccurately assessed the Australian electricity market;
- misunderstood the nexus between global and national climate change politics and electricity markets;
- failed fully to recognise the costs being imposed on the market as a result of increasing levels of renewable energy and other greenhouse gas abatement policies; and
- offered guidance that is inappropriate for the market’s future development.
The report canvassed different options, but of the seven themes identified as showing a future path, only one of these ”Prices have risen substantially in the past five years” can be said unambiguously to be true. Most of the others are palpably false and even the one correct theme is not necessarily a guide to the future unless the policies that have been pursued over the past 16 years continue to be kept in place. READ MORE