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Economic Issues Facing Electricity Supply Authorities

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  • G. D. McColl

Abstract

The slowing in the growth of electricity consumption in the early 1980s was accompanied by a significant increase in real unit costs in all Australian states. This article examines the economic issues facing government‐owned electricity supply authorities under four headings: policy objectives including the question of whether the authorities should act as agencies to redistribute incomes; the estimation of future demand, especially the need to relate future demand estimates to likely changes in costs; supply aspects, including internal efficiency, cost of capital and size and reliability of generating plant; and pricing policies, particularly the need for time‐of‐use tariffs to improve capacity factors.

Suggested Citation

  • G. D. McColl, 1985. "Economic Issues Facing Electricity Supply Authorities," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(4), pages 28-36, December.
    • Handle: RePEc:bla:ausecr:v:18:y:1985:i:4:p:28-36
    DOI: 10.1111/j.1467-8462.1985.tb00302.x
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    1. R.W. Fraser, 1983. "Individual Industry Development in Mining and Mining-Related Areas and Their Impact on the W.A. Economy: An Application of Orani-Ores," Economics Discussion / Working Papers 83-13, The University of Western Australia, Department of Economics.
    2. Jane Niall & Rhonda Smith & Peter Wilson, 1982. "The Economic Impact of Electricity Shortages: The Case of Victoria," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 15(2), pages 62-76, August.
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