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Electricity Price Increases: (Disclaimer: IMHO and not necessarily correct for all or any regions)
1. Main cost component - Coal. Overseas demand has led to increased prices in the export of Coal. So local prices have increased too, of course.
2. Other main cost - Insurance. Huge increases in insurance costs over last decade due to natural disasters, thirds party litigation wins, and workers compensation.
3. Shareholder - State Government - demanding huge increases in dividends paid to the Government. (sometimes exceeding PAT)
4. Infrastructure Costs - refer 3 above. Due to ministerial direction not to invest in any new infrastructure over last two decades, huge investments now required.
5. Privatisation - Due to potential sale yielding quick (albeit short term) positive cash flow, and possibility of passing on need to invest in new infrastructure. Perceived competition was introduced to make them appear more attractive. Electricity now has a derivatives trading market. Profit takers dominate. Refer 3 above
6. Carbon Tax - Final nail in the coffin.
Some might think the above is probably classified, and that Mr Public is not supposed to know. [OOPS: did I say that out load.]
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