*The COST of our elec is projected to go UP UP and AWAY over the next few years... why?*

Quite simple Boaz. The old coal fired power stations are clapped
out, especially the brown coal ones in Victoria. The greens want
them shut down anyhow. So new power stations need building and
they will run on gas. Gas costs more then coal. Given that
energy use is rising, as we have increased population and more
people with air conditioners, plasma screens etc, either they
build them soon or you will suffer from constant black outs in
Victoria.

The CEO salary has nothing to do with it. Origin turns over something
like 8 billion $ a year. Grant King has been an extremely good CEO
for Origin. Some years ago his base salary was 1.3 million $ plus
some share options, I'm not sure now. Given that they have millions
of customers, your share of his salary would hardly be 1$ a year.

Now I'm not sure what you think what one should pay a man who
could easily lose a billion or two, if he gets it wrong, but I
can assure you, that if he is seen to have talent, he'll soon have
offers from around the world from global headhunters.

You too can buy Origin shares, if you think they are ripping you
off. You'll earn around 3% on your money.

Hi Yabby...thanx for that.

1.3 mill is a heck of a lot less obscene than CBA's Norris' 16 million (plus perks?)

In fact.. I tend ot have more respect for Kings 1.3m in his job because it's quite technical. I doubt he will 'get it wrong' unless he's a total dope/politically rewarded appointee. There are plenty of examples and experience world wide now.

Makes you wonder why Bank CEO's get paid so much...doesn't it?

Gas fired power stations? Methinks this issue should have formed part of the 'Privatization' projections and the Aussie public made aware of how it would all pan out over 2 decades after privatization.

Have the Energy companies exercised responsible stewardship of the infrastructure? or...have they slashed and burnt for the sake of bigger bonuses and a better bottom line in the short term for 'Shareholder value'. I find it outrageous that 'suddenly' they need to spend megabucks on infrastructure, as that suggests they haven't had any plans or done anything about systematic upgrades etc.

I am still looking for input from you blokes about how a 'Bloc' might work in practice and what unexpected costs might arise. As I said.. Box Hill council used to 'bulk buy' for it's rate payers.

Why don't/can't councils represent rate payers in that way now ? (or..some other type of representative body)
I'm not talking about 'looking around for the best offer'...but 'MAKING' an offer themselves to the one who will come good.

Methinks that you are approaching this one all arsed about,Boaz.

http://new.dpi.vic.gov.au/energy/policy/greenhouse-challenge/feed-in-tariffs

Power retailers are forced to pay you 60c/unit, if you install
Govt subsidised solar PV panels, which have dramatically dropped
in price anyhow.

It's crazy I know, but that is how Govts deal with other peoples
money, just give it away.

Alternately you could address why you need such a big heater.
If its to keep warm, some insulation might help to dramatically
reduce it. If its for industrial reasons, well that would be built
into the price of what you sell. But you can still use solar heat
to lower it.

Use less power and your power bill will drop. Its as simple as that.

Yabby,

The last time I reviewed Hazelwood power station, the turbines and boilers are good for at least another 20 years, and the coal supply for another 30.

The management has spent billions renewing them, and are not going to meekly hand them back.

I can certainly relate to the concept, Boaz.

Buying groups are nothing new in businesses of all shapes and sizes. And you are quite correct, if you can gather sufficient buying power within a definable group, and direct them in a manner that engages the attention of the Sales functions in your target industry, there is a good chance that you will be able to negotiate a price reduction.

What I think you "misunderestimate", is the amount of effort involved.

This is particularly true in i) the Energy sector and ii) Victoria, where customer churn already ranks among the highest in the world. This is generally an indicator of an already competitive market. Since this is largely driven by the individual consumer, recruiting enough people to achieve the critical mass you will need at the negotiating table might prove more of a challenge than you presently anticipate.

You are then faced with the problem: how will you be able to guarantee to these folk that their discount will i) be sustainable and ii) continue to represent the best possible deal? After all, the lucky energy company that gets your group's business will want some assurances as to the "stickiness" of their new customer group.

I suspect that you don't actually intend to do this yourself, though, do you?

SM, I stand corrected and used the wrong words in "clapped out"

The issue with Hazelwood seems to be its CO2 emissions, so there
is political pressure to shut it down for that reason.

The way I understand the power generation market, its unlikely
that anyone would invest in coal, due to the uncertainty about the
co2 price.

So extra capacity will be built to use gas, electricty from gas
will become more expensive.

No doubt that if they tried to shut down Hazelwood, the owners
would have every right to seek compensation.