I featured in Eric Tlozek’s excellent story on the proposed leasing out of electricity assets on 7.30 Queensland last night:
I come in at around 3 minutes, 20 seconds, after the Opposition Leader. The main points I made were:
- if the assets are leased out, electricity prices are likely to be lower than they otherwise would, because privately operated assets would be run more efficiently, and
- the Government needs to provide more information on the relative benefits and costs of asset leases to the public, given that it’s clear people are worried about adverse impacts (e.g. on jobs, power prices and service reliability).
Well done to Dr Liam Wagner from the UQ Economics School for his insightful analysis of the potential impact of asset leases on the cost of electricity supply. I particularly liked his discussion of how private operators would save money by spending on capital only where there is a “burning deck problem”.