Iemma Govt running out of energy or governments get the voters they deserve.

Governments are coming to the realisation that they need to respond to global warming by moving away from coal fired power stations. The cost of continued use of ‘dirty’ energy like coal however will inevitably lead to pain for the consumer, pain that governments will not want to be associated with. Far easier to privatise, then let the new owners bear the wrath of consumers for the inevitable price rises, while governments then distance themselves from any responsibility.

A consequence of the disagregation of the utilities sector in NSW in the late 1990’s was the eventual sell-off of Pacific Solar, an offshoot of Pacific Power, a company working towards the commercialisation of solar photovoltaic energy technology and systems. This follows what Governments of all persuasions have done. That is, missed out on the early window of opportunity to lead the world in the development of solar energy. Now more difficult solutions will have to be found.

The unpopularity of the price rises for electricity will drive the movement away from government delivery of energy. China is currently working on solving the affordability problems of solar panels. This would, with Australia’s sunlight advantages, be of benefit to consumers of electricity at some point in the future.

In the meantime, governments like the NSW Iemma State Government will continue to bail out and continue to privatise. In Iemma’s case however, the unpopularity of the decision may cost him dearly. Just like Workchoices became the fatal policy for the Howard government, so too may privatising electricity prove to be the final breaking of trust with NSW voters.

There are many who were made victims of the rationalisations for the national power grid in the 1990’s but NSW, unlike SA and Vic did not pursue full privatisation. By now seeking to privatise the electricity market the disgruntled will not only be workers in the power industry but also the consumers at large. The CFMEU estimates that 80% of people interviewed in a recent study were against privatisation and the question will be whether the voter will see this action as a betrayal.

Indeed history is littered with examples of the fury of the voter scorned.

~ by abstraktbiblos on Wednesday, 19 December, 2007.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: