“Private investors could face being squeezed out”: Fear of speaking out about Victoria’s green energy nationalization plans – Are you happy with that?
Essay by Eric Worrall
Massive government response – People’s Republic of Victoria strives to accelerate green energy transition through direct public investment has terrified the renewable industry.
‘Dangerous journey ahead’ under Victoria’s energy overhaul
Patrick Durkin and Angela Macdonald-Smith
October 21, 2022 – 4.54pmClean energy investors have warned of an investment drought and major energy users say their survival will be at stake unless the Victorian Labor government gets a radical plan to restore state ownership of electricity supply.
Major industries fear they will be sold at a higher price and be forced to take on more risk plan of a re-elected Andrews government revive the State Energy Corporation to invest, own and retail renewable electricity.
Concerns were voiced by groups representing companies like Brickworks and Bluescope Steel as major renewable energy investors said they would not invest the tens of billions of dollars needed to meet the 95% energy target. Victoria’s proposed renewables for 2035 if they are disadvantaged in any way. against new state players.
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Private investors could face being squeezed out of their new investment in planned energy, which is where the mega-sector – which will co-invest with the SEC – lined up to support. Morgan Stanley thinks the plan is “net negative” for major suppliers AGL Energy and Origin Energy.
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What can I say – people who live by political decision, die by political regime.
I suspect what the incumbents want is for the Victorian government to deliver large bags of cash, evenly, so they all benefit from even more taxpayer funding.
But have bad memories of the last time a leftist Victorian government tried to play the part of a merchant banker. Back in the late 80s, the Tricontinental scandal nearly brought the entire state into bankruptcy, resulting in the forced sale and closure of the State Bank of Victoria for the Commonwealth Bank owned by the Federal Government and just under a decade of Conservative rule under the Government of Kennett. The destruction of an entire banking union overnight is too hard to swallow, even for Victorian left-leaning voters.
I remember having a beer with some Victorian Bank employees at the time of the crisis. It’s a joke to the staff that all you need to do to get a loan from Tricontinental is put on a cool suit, and carry a suitcase full of cash.
The Victorian government’s record with direct ownership of energy assets is almost as bad as its record as a financier. In an age of mostly reliable electricity (nowadays), it is easy to forget that the main driving factors driving the massive privatization of state-owned energy assets is the loss of energy. frequent power, long connection time and high cost. At the time, I was fortunate to live nearby, on the same subnet as a very large company, which had a multi-million dollar penalty clause in their electricity contract, when a million dollars la is real money. So when it comes to dumping, other people often take the hit.
With memories like these, it’s no wonder the Victorian government’s plans to take a step to re-nationalize their electrical assets are being received with less enthusiasm.
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