Finkel Reforms to Governance of Electricity Market

Among the many counter-productive recommendations the Finkel report offered was an increase in the electricity market’s “governance”.  This is a demand for even more of the political tinkering which, in the space of just 15 years, transformed the Australian electricity industry from the cheapest in the world to one of the dearest. Distortionary subsidies to renewable energy, which have also undermined reliability, are paramount in this.  

Finkel decided that renewables are inevitable (which is why Malcolm Turnbull appointed him) and commissioned economic research to demonstrate that this is so. By torturing the data the modelling managed to show prices would be lower if we replace low cost coal generated electricity by high cost wind and solar!  

See more from this piece by ALAN MORAN in Quadrant