POWERING QUEENSLAND: Why competitive, private electricity markets offer lower prices and better infrastructure 2 | POWERING QUEENSLAND: WHY COMPETITIVE, PRIVATE ELECTRICITY MARKETS OFFER LOWER PRICES AND BETTER INFRASTRUCTURE For more information please contact: Brendan Lyon Chief Executive Officer Infrastructure Partnerships Australia T 02 9240 2050 E
[email protected] Jonathan Kennedy Director, Policy Infrastructure Partnerships Australia T 02 9240 2057 E
[email protected] Ilya Zak Manager, Policy Infrastructure Partnerships Australia T 02 9240 2063 E
[email protected] Copyright @ Infrastructure Partnerships Australia Disclaimer Infrastructure Partnerships Australia provides no warranties and representations in relation to the information provided in this paper. It is not intended for and should not be relied upon by any third party and no responsibility is undertaken. CONTENTS EXECUTIVE SUMMARY 8 RECOMMENDATIONS 11 1 THE CASE FOR REFORM 14 1.1 STALLED REFORM & PRICE IMPACTS 14 1.2 FISCAL CONSTRAINTS 15 1.3 CONFLICTS OF INTEREST 18 2 A CLEAR REFORM PATHWAY 20 2.1 RETAIL 20 2.1.1 EsTABLISHING AN EFFICIENT MARKET PRICE 20 2.1.2 ACHIEVING A TRULY COMPETITIVE RETAIL MARKET 21 2.2 GENERATION 22 2.3 NETWORKs 24 APPENDIX A – VALUATION WORKINGS 27 DISTRIBUTION AND TRANSMISSION 27 GENERATION 28 RETAIL 30 APPendix B – PrioriTY INFRASTRUCTURE PROJECTS 31 BIBLIOGRAPHY 33 TABLE OF FIGURES FIGURE 1: ELECTRICITY RETAIL MARKET SHARE (SMALL CUSTOMERS) BY JURISDICTION, 2011 14 FIGURE 2: INSTALLED GENERATION