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The Forum > Article Comments > Electricity prices > Comments

Electricity prices : Comments

By David Leyonhjelm, published 16/8/2017

The federal government could immediately make electricity GST-free without seeking support from the states.

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I've always argued, a good government is one that does nothing. And this is good evidence of the truth in that theory!
Posted by diver dan, Wednesday, 16 August 2017 9:30:45 AM
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It is not the GST, it is the price gouging of the power companies.
Posted by ttbn, Wednesday, 16 August 2017 10:00:52 AM
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Just found this have not checked but if true someone needs sacking.
Import gas from Qatar at what cost? We have lots and lots of it if true the Government is being run from the funny farm.

"On the Victorian front the State government has stuffed up on the Swan Street Bridge road project, it will cost Millions more and take months more to complete.

They are going to construct a wharf, where we can receive gas, which we are going to import!!

This government has banned the exploration of gas for another three years or so, so we now are going to buy it from Qatar, as they have just found out that they will be in short supply of gas this winter. The energy Minister is a woman a Ms Ambrosio, she is so stupid, like you will not believe, she should be sacked as right now. And you know we are sitting on so much gas and coal!"
Posted by Philip S, Wednesday, 16 August 2017 11:49:07 AM
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Electricity and tampons what's next? I think it's also on the cards that a crude oil price rebound will lead to demands for a fuel excise cut. Refusing to accept higher cost for both electricity and fuel means that alternatives are delayed making an eventual crisis more difficult. As incomes get compressed it may also be that indirect taxation like GST has to do more of the heavy lifting.

As to power bill shock I see some merit in Victoria's 'basic service offer' proposal. If you are efficient or frugal you have a sporting chance of keeping power bills minimal. I suggest the BSO could be something like 6 kwh per day per adult. That's 2.2 Mwh per year as opposed to a more typical 4-6 Mwh. If the BSO was priced at say 25c per kwh including GST that's $1.50 per day or about $550 annually. Power retailers would be obliged to offer this by law.
Posted by Taswegian, Wednesday, 16 August 2017 12:59:53 PM
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Taswegian...

Half the cost of the power bill is in line rental. Therefore saving power usage is usually an insignificant contribution to the final power bill.
The line rental cost is 50% of the problem that is ignored in this debate.
Posted by diver dan, Wednesday, 16 August 2017 1:36:18 PM
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the gw myth is largely to blame for pensioners going cold in winter and hot in summer.
Posted by runner, Wednesday, 16 August 2017 2:41:33 PM
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