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Electricity Networks Privatization in Australia: An Overview of the Debate

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Abstract

The debate on electricity networks privatization in the Australian National Electricity Market is an important public policy concern but remains unsettled. This article reviews and compares the economic performance between the privately and state-owned electricity networks in Australia across three dimensions encompassing prices, quality and investment. The comparative analysis suggests that privately owned networks are not worse off than the state-owned networks in terms of performance. However, international empirical evidences indicate that the efficiency gains to consumers from electricity networks privatization will depend on the underlying regulatory regime and regulatory institutional framework. The long-term concerns on future investments, security of supply, climate change and economic regulation of networks will continue to prevail once the short-term efficiency gains from privatization are exhausted. These concerns imply that the role of the state will still be significant, although transformed, even after electricity networks privatization raising questions on the motives of privatization.

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  • Rabindra Nepal & John Foster, 2015. "Electricity Networks Privatization in Australia: An Overview of the Debate," Discussion Papers Series 541, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:541
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    2. Yousefi, G.Reza & Kaviri, Sajjad Makhdoomi & Latify, Mohammad Amin & Rahmati, Iman, 2017. "Electricity industry restructuring in Iran," Energy Policy, Elsevier, vol. 108(C), pages 212-226.
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    4. Leal, Mariel & García, Arturo & Lee, Sang-Ho, 2021. "Strategic CSR and merger decisions in multiproduct mixed markets with state-holding corporation," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 319-333.
    5. Brzić, Barbara & Dabić, Marina & Kukura, Frane & Podobnik, Boris, 2021. "The effects of corruption and the fraction of private ownership on the productivity of telecommunication companies," Technology in Society, Elsevier, vol. 65(C).
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    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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