Pitch Widget
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Ruth Kershaw- Description
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.The Victorian electricity market is a money making machine for the Singaporean Government.
They own the majority of Distributors across the state. Some of which they share ownership with others. They are majority owners of the 'fee for service' providers to the Distributors: Which they pay handsomely with more profitable premiums.
They even own the financiers, which charge the Distributors 9-10% interest per annum: on enormous debt/borrowing against the assets. Why wouldn't they? The regulator permits them to pass on the interest cost directly to consumers.
Its a win win win for all their subsidiaries, which cascade directly back to the Singaporean Sovereign Wealth Fund (their version of our Future Fund).
Meanwhile Victorians endure the rising costs in electricity prices which parallel the profits of the subsidiaries of the Singaporean Government. The recent 20% profit rise by SNP since the roll out of the meters is one example.
I think it is worth reading how easy it is for the Singapore Government to do this, and how they pick and choose industries to dominate in Australia which have similar features - unfettered ability to make exorbitant profits.
I am a mirco economist who had a past life in Electricity Regulation. I have maintained a passing interest in the industry, but more recently did some more indepth research on company structures.
I believe the information is in the public interest. Not least of all because we are not going to get better regulation, fairer or more efficient pricing of electricity, unless some of the root causes of the price rises are addressed.
It is surprising that this dynamic with the Singaporean Government's investment arm is very controversial with some of our close neighbours, and national regulators have been much more vigilant in providing oversight, as well as blocking investments. These actions have occured largely as a result of community concern.
