Several factors impose a cost when solar surplus electricity is sent to the grid but I think it should be closer to the wholesale price. They don't resell that same kwh at night when it is worth more. Federal energy minister Ian Macfarlane says that NSW will run out of cheap gas by 2016 unless we drill more. I think that includes CSG under the suburbs. Some want Sydney to go large on gas fired trigeneration. Therefore it seems likely that NSW power prices will increase yet again. Why not make the proposed Bayswater B power station a nuclear plant?

The Govt doesn't own these assets, the people do. In their original concept, these things were created to just about break even, as a concept of public service.
The social benefits far outweighing any profit.
Everything we make, including houses and cars; and every business needs an energy input, and whatever that input cost, it simply magnifies and cascades through the manufacture and transport processes!
And then we wonder why we Australians pay a 30% premium at the checkout
This scandalous position is now thrust on us, by people with no business management acumen or expertise!?
And by fatuous frivolous fools who escape their responsibilities, by mouthing mindless mantras, (like the govt has no business in business) and who, I believe,put their own reelection prospects, (and other interests) ahead of those who elect them!?
Those who volunteer to serve should do just that!
Or stand aside and let others who will, replace them!
In any other employment category, incompetents can be simply sacked, we however, the so-called shareholders of public property!
Have to wait for a term to end, and then vote these hopelessly incompetent nincompoops out!
Please, for heavens sake people, try to remember what this or any other govt has actually done, and then vote on their record, rather than their rhetoric or endless non-core promises.
Keep your eyes open, and just compare the pre election promises, with the actual outcomes and or performance.
Let's stop giving learner drivers so many chances, that they wreck the economy, when simple pragmatism and placing the national interest first, and a bit of testicular fortitude, would avoid most of these problems!
Which arguably have their foundation in too much tax relief for those who don't need it, cronyism or a chronic lack of real enduring resolve; and simple money wasting exercises, just so this or that Ideologue, can build a personal empire?
It's just not good enough!
Rhrosty.

Its unfortunate this article is so long (more than 1600 words) - this will turn off readers - and hence will receive fewer comments than it deserves.

The article raises many good points.

When I ring up my privatised NSW electricity provider to complain about a 20% price rise over 12 months - the providers arrangements with the NSW Government allow provider to say "its the NSW Government that sets these increased charges under NSW Regulations".

So it looks like NSW Government-provider deal rather than genuine competition is driving price. Hence 20% rises per year are locked in.

Another point is the Federal Government official expectation that electricity prices will go down 9% due to removal of the carbon tax Just Won't Happen.

Problem - NSW electricity companies and the NSW Government expect to raise prices 20% a year - so at best the result will be 20% minus 9% equals an 11% rise.

And that "reduced" 11% rise will only occur after the 12 months that the carbon tax has been abolished. The Labor-Greens majority in the Senate until 1 July 2014 + 12 months means the "reduced" 11% rise will only kick in the last after 1 July 2015!

Pete

By pointing to the apparent excess profits earned by the NSW Govt on its electricity generation and distribution assets, the author in effect confirms that there are no grounds for the NSW Govt to continue owning those assets.

As there is no apparent shortage of competition in those industry sectors in NSW , the privatisation of those government-owned electricity assets should be expedited, and the de-regulation of electricity pricing nationwide referred to the Productivity Commission for inquiry and report .

Furthermore, given that there is no empirical scientific evidence to substantiate the hypothesis that anthropogenic CO2 emissions cause dangerous global warming, there are no grounds for retaining (a) the Renewable Energy Target, (b) the taxing of CO2 emissions whether by way of the carbon (dioxide) tax or an ETS, and (c) green schemes, and there are no grounds for implementing Direct Action. Instead, Federal Governments should be planning how to respond efficiently to future naturally-caused disasters.