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afaik it’s how power distribution works in australia? i think there are energy “retailers” and energy “wholesalers”, and you legally aren’t allowed to be both.
by rickycook 8y ago
afaik it’s how power distribution works in australia? i think there are energy “retailers” and energy “wholesalers”, and you legally aren’t allowed to be both. wholesalers cover plants and wires, and retailers handle billing and connection.
thats not a glowing recommendation of he system though because our electrical network is all kinds of expensive :p (but that could be for other reasons; i’m no expert on it)
- caf 8y agothats not a glowing recommendation of he system though because our electrical network is all kinds of expensive Yes. The distribution monopolies are only allowed to make a fair rate of return on their operating and capital expenses, as determined by the independent regulator (this is to prevent them from raising their prices to the point that they capture all the economic surplus, as they otherwise would). Unfortunately this has incentivised over-investment in the distribution networks (the more they spend, the more profit they're allowed to make) - referred to as "gold-plating" - which ends up being passed on in the prices faced by consumers. Specific to the ISP issue, this is how the NBN works in Australia too - the NBN provides the underlying network, but isn't a retail ISP itself.