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Updated March 03, The Coalition Government is pushing to sell off the "poles and wires" if it wins the election, and the Labor Opposition running an bbw powered by trade expert campaign. Of course they will. The only reason someone buys an asset is to make money on it," Opposition Leader Luke Foley said at Labor's campaign launch on March 1.

Does South Australia have the highest electricity bills in Australia and is it a result of privatisation? ABC Fact Check investigates. The national bbw powered by trade expert market has four components:. If it wins the NSW election, Mike Baird's Coalition Government plans a year lease of 49 per cent of the transmission and distribution businesses. These two components are commonly referred to together as "the network" or "poles and wires". Before the s, all state governments owned and ran all four components, but ownership is now in a mix of government and private hands around the country:.

Electricity was privatised in South Australia in and in Victoria in the second half of the s. The ACT Government bbw powered by trade expert up a joint venture with a private company in to run its electricity businesses. The agreement allowed each state to introduce competition among electricity generators, and over time, the retailers.

However, the transmission and distribution components are a natural monopoly - there's only one set of high voltage transmission and low voltage bbw powered by trade expert lines, the "poles and wires" in any one place. Several joint government agencies manage, operate and regulate the NEM. Mr Foley's office told Fact Check the source of his claim about electricity bills was a report on the performance of the retail energy market by the Australian Energy Regulator. The AER estimated annual electricity bills by taking into account energy retailer discounts and seasonal pricing.

Its chart, which only covers the NEM states, represents the median market and "standing offers" in each state. The AER says using the median, rather than a simple average, "ensures the analysis is not skewed by a small number of very cheap or very expensive offers". It defines standing offers as "basic electricity and gas contracts with terms and conditions that are prescribed by law and designed to protect [consumer] rights".

The AER notes that the two main components of energy bills are the price of energy and how much energy is consumed. South Australia, with privatised electricity, does have the highest bills according to the AER data. But the ACT, also mostly privatised, has the lowest bills and Victoria, fully privatised, has bbw powered by trade expert lower annual bills than NSW, Queensland and Tasmania, all of which have their electricity networks in government hands.

A report on residential electricity prices around Australia prepared for a meeting of federal, state and territory leaders in December by the Australian Energy Market Commission bbw powered by trade expert a different approach. The AEMC report, unlike the report cited by Mr Foley's office, took into account different levels of electricity usage in different states.

In contrast to the AER's comparison of standing offers, it considered "market offers" set by retailers. It compared household bills in the four jurisdictions where market offers are generally available - South East Queensland, NSW, Victoria and South Australia - and used low consumption, high consumption and "jurisdiction-specific representative consumption" figures for each. South Australia has the highest bills for consumers who use low and high levels of electricity, but not for representative consumers.

NSW has the second highest annual bills for low and high consumers, and the highest for representative consumers. It found that since privatisation, electricity bills have increased less in the privatised states of Victoria 99 per cent and South Australia 80 per cent than over the same period in the non-privatised states of NSW per cent and Queensland per cent.

Lynne Chester, an energy researcher at the University of Sydney, says it's wrong to conflate higher bills with higher electricity prices because of the influence of household characteristics, including family composition, construction materials and habits such as use of clothes dryers, air conditioners and swimming bbw powered by trade expert.

There are also significant regional variations. The AER report shows wide variations in energy use, with annual electricity consumption ranges of kilowatt hours kWh in Victoria to kWh in Tasmania, and gas consumption ranges from 10, megajoules MJ in Queensland to 63, MJ in Victoria. Dr Chester says looking at the change in electricity prices over time is more informative than comparing electricity bills in each state. She has conducted an analysis of electricity price changes, rather than electricity bills, between and using AER data.

In a paper published in March, she found that prices have increased more in the non-privatised states of NSW and Queensland, compared with the privatised states of Victoria and South Australia. The Australian Bureau of Statistics publishes an electricity price index across Australia as part of its calculations for the consumer price index.

The electricity price index measures the change each quarter in the price of electricity in capital cities. The data shows that electricity prices were relatively flat through the bbw powered by trade expert, but escalated in all capital cities from Adelaide, Melbourne and Sydney have experienced higher price increases than other cities since The highest point was recorded in Adelaide in March and the most recent numbers for December show it is slightly higher than Brisbane, Sydney and Melbourne.

South Australians are paying more for their electricity because of high network costs, as well as high competitive bbw powered by trade expert. Victorians pay less because of lower network costs, although they pay high competitive costs. A Productivity Commission report in said: It found that some network businesses were inefficient, reliability standards were too high and management of peak demand was weak.

The electricity network the poles and wires is regulated by the AER. The AER sets maximum prices the network owners can charge and the maximum amount of revenue they can earn. Its decisions apply for five years. The AER explains that all networks need to invest to meet demand and to replace ageing assets. The report said its regulatory determinations from to reflected increasing capital bbw powered by trade expert to replace bbw powered by trade expert assets, meet higher reliability standards and respond to forecasts made at the time of rising peak demand.

Tony Bbw powered by trade expert, energy director at the Grattan Institute, said the AER sets network prices regardless of whether they are publicly or privately owned, and doesn't take into consideration how bbw powered by trade expert a company paid for the business. AER reports from and show that NSW and Queensland have invested more in their network businesses than the privatised states. Mr Wood told Fact Check the previous AER cycle erred too much on the side of the investor, particularly with regard to bbw powered by trade expert peak demand as a result of increasing air-conditioner usage.

Liam Wagner, a lecturer in economics at Griffith University, said it's difficult for the AER to assess whether the veracity of the claims made by businesses who bbw powered by trade expert the network are valid.

Dr Wagner said the increased expenditure is partly a result of the AER setting a higher reliability standard, and that NSW and Queensland, the states where network businesses are in government hands, have spent more on their facilities to meet these standards.

Dr Chester made a similar point in her recent paper. She wrote that the primary driver of the significant increases in electricity prices had been the return on capital invested by network businesses. She said investment needs varied by state. Some governments set higher reliability standards than others, and states with a larger land mass required networks that cover longer distances and some states had ageing assets in need of replacement.

These and other factors "have sharply influenced the scale of investment by each network, irrespective of ownership, and thus the increase in network charges which has ensued," she said. The other components of price - wholesale and retail bbw powered by trade expert and government environmental policies - can also affect electricity prices in each state. For example, South Australia has one of the highest penetrations of wind energy in Australia.

Similarly, government environmental policies can also have an unequal impact on electricity prices across the states. The carbon price made up about eight percent of consumer electricity bills in States that use more coal-powered electricity, like NSW, paid a higher price than states using wind power, like South Australia. Mr Wood says the AER will now benchmark network businesses against each other, and a NSW draft determination for the next regulatory period proposes lower revenues for network businesses, which are expected to result in lower electricity bills.

NSW Premier Mike Baird announced that former Australian Competition and Consumer Commission chair Allan Fels would be appointed Electricity Price Commissioner if privatisation went ahead and his job would be to guarantee electricity prices don't go up. It found South Australia, with privatised electricity, does have the highest bills. But Victoria, fully privatised, has slightly lower bills than NSW, Queensland and Tasmania, all of which have their electricity networks in government hands.

Comparing bills is problematic because of large variations in consumption, household composition and how people use electricity in different states.

The ABS index of electricity prices across Australia, showing movement of electricity prices over time, also doesn't demonstrate a link between privatisation and price rises. Whether comparing electricity bills, prices or the relative price index of electricity in each state, there is no consistent link between privatisation and what consumers pay for their electricity.

Experts say the biggest influences on what people pay for electricity are costs of transmission and distribution. They say these costs have risen in recent years irrespective of whether the owners of the transmission and distribution networks are privatised.

Mike Baird, media release. Allan Fels to guarantee power bills fall under privatisation. First posted March 25, More stories from New South Wales. Send us your tip-offs, or let us know what you think. Posted August 09, You've probably heard her story, what happened in the laneway behind a Kings Cross nightclub.

Now she's speaking publicly for the first time as a warning to others. There's never been a better time for tax reform. But as governments have tried and stumbled over the years the burden has shifted to individual taxpayers and the latest budget looks no different.

Talk about fortuitous timing. There's an election looming and a budget situation — long portrayed as a disaster — suddenly on the mend. But what to do with this sudden bounty? Luke Foley says power prices will go up if the electricity network is privatised AAP: NSW Opposition Leader Luke Foley says bbw powered by trade expert privatisation pushes up power prices and households in privatised South Australia have bbw powered by trade expert highest bills.

While one report did find SA had the highest bills, others don't back that up. Mr Foley's claim is spin. Cost of annual electricity bills in and The electricity price index for capital cities between and The make up of the total cost of electricity in each state in financial year When people say electricity prices went up, they went up everywhere, regardless of ownership.

Sorry, this video has expired. Contact Send us your tip-offs, or bbw powered by trade expert us know what you think. Connect with Bbw powered by trade expert Check. Key tweets Posted August 09,

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