Why Customers Want Cheaper Electricity

Australia's power distribution is very effective with very few blackouts and 24 hour assistance in case of emergencies (Metcalfe, 2007). Like any other country, Australia has environmental issues however it is trying to become more environmentally friendly and efficient. Australia is building more infrastructure and becoming more environmentally friendly. China on the other hand does not have effective energy distribution. Blackouts are a common thing in China due to the overwhelming demand for energy (Xinzhang, 2007). Right now China faces the problem that there is not enough transmission capacity to provide additional supplies which results in poor distribution. Coal is the main resource used for energy supply in China by a staggering 63.4% compared to 6.9% hydroelectricity (China Today, 2005). Coal use in Australia is significantly less than this with only 42% of its energy source being coal (Metcalfe, 2007). China has overwhelming carbon dioxide emissions, so overwhelming that China is accountable for 15% of the world's emissions (World Fact book, 2007). This has very negative social costs with acid rain being a frequent problem for China. 5% of China's GDP is spent on trying to fix the social costs of pollution (China Today, 2007). Not only is this not statically efficient, but it is not dynamically efficient either. Therefore, even though both countries have environmental issues, Australia is able to provide a better power supply

Using the data and your knowledge of economics assess the arguments for and against the government intervening in the UK electricity industry.

This has been the result of inflationary pressures due to excessive consumer demand, and a world increase in oil prices, the RBA’s primary objective is to contain inflation at 2-3% whilst also achieving sustainable growth. The current increases in interest rates will result in lower aggregate demand as consumers have less disposable income. This results in reductions in inflationary expectations, and a decrease in the demand for imports. Furthermore higher rates of interest will encourage overseas investment into Australia, thus resulting in an increase in the demand for the Australian dollar. An increase in the demand for the AU$, and a decrease in its supply due to less import expenditure will result in an appreciation of the AU$ in forex markets. Overall this results in depressed economic activity and lower levels of growth. However the RBA has been able to increase interest rates in order to contain inflation while maintaining economic growth. This is because the global economy has continued to grow at record pace, with strong growth in the US and China, and the recovery of Japan and Europe. Consequently demand for Australian exports has remained high, thus creating opportunities for increased production and subsequent economic

1. I have experienced high rates first hand. It’s never fun paying $700 for one month of energy when your home claims to be energy efficient.

In 2007, Canada’s industries saved 2.1 billion U.S. dollars of energy costs (2007). All these numbers show Canada’s efforts in general public utilities.

The mining business is where the greater part of Australia’s economy originates from. Conservative politicians are unwilling to accept climate change, for the reason that they favour society’s values and aspects to be unchanged. A case which supports this notion is Australia’s and the United States rejecting to join other countries in partaking in the Kyoto Protocol. The Kyoto Protocol aims to unite countries to set limits on their greenhouse gas emissions, to suppress the destructive effects of climate change. The United States expresses that it will not participate in the international treaty due to; absence of sufficient supporting scientific evidence, large developing countries such as China or India aren’t partaking in the movement and reducing the greenhouse emissions would mean loss in their economy. Therefore, Australia and the United States will be more reluctant to adapting accepting climate change as it will negatively affect the industries that both countries originated from and have thrived on (Vanderheiden,

With renewable sources and energy conservation becoming more prominent, there is a lower electricity usage. Many energy utilities are starting to take a hit because most of their income comes from customer charges. Companies have started to phase out charging customers based on electric usage and have switched to a fixed monthly fees that are at least $25 more per month. It is believed that companies should increase their fees by 1% every year to maintain the grid but since profit is decreasing, they are looking into a much higher fee. Vice President of the Edison Foundation, Lisa Wood, told the Wall Street Journal that there needs to be more money put into the electricity grid because of how complex it has

The regulatory constraints on businesses from government have been subdued recent years. Fulfilling the function of the state, Prime Minister Tony Abbott’s government proposed a new climate policy that the government will put off the existing levy on emitters and set up fund with as much as $2.6 billion to subsidize the mining enterprises in cutting green-house gas emissions (Anderson, Scott 2014). The subsidy released the financial burden of carbon tax which cost BHP $77.5 million in 2013 (Financial Review 2014) as an enabler in mining industry (Conrad 1993).

Is coal power the best option for Australia, as current ‘green’ energy options are unable to support our power needs now and into the future.

In Australia, there is an emerging consensus that the government should take further actions to help mitigate and combat climate change. The current most accepted policy by government is the introduction of a carbon tax followed by an ETS in 2015. However we are focusing on the carbon tax in this essay and not the ETS. Here is a brief explanation of the dynamics of a carbon tax. A carbon tax is a tax on energy sources, which emit carbon dioxide (Co2). Therefore, carbon taxes address the problem of negative externality. Externalities are the subsequent effects when individual production or consumption of a particular good or service imposes costs or benefits on others. Therefore negative externalities are effects, which pose harm to others without their direct interaction (Basic Economics 2011). However, usual market practices and transactions do not reflect these cost and benefits in the prices involved in the transaction, or take into account in their transaction decision. Therefore this is a form of market failure. By imposing a cost on these negative externalities, the hidden cost can be addressed. Ultimately the purpose of a carbon tax is to reduce emissions of carbon dioxide and therefore reduce

In February 2011, the Australian federal government declared a scheme to implement a Carbon Tax from July 1, 2012. Implementing this scheme has generated a controversial debate between Australians. The term “Carbon tax” refers to an environmental tax forcing polluters to pay per ton of carbon which they release into the atmosphere. This essay will provide the economical, social and political implication of carbon taxes, also with its introduction who will benefit and who would suffer.

An increase of clean energy investments implies that funding for non-renewable energy would be decreased, which is something the government is unwilling to let go of. This is evident from Australia’s reluctance in putting its name down on the Paris climate summit communique which promotes the phasing out of government subsidies for coal, gas and oil. There are several justifiable reasons for keeping the coal industry, as coal is indeed Australia’s largest energy export, and also the major source for domestic power generation. The Coalition government also believes that coal is “essential to relive energy poverty”. But the bad news is that the future for coal industry in Australia does not look good. Coal prices have been dropping, and it is predicted that coal mines will become uneconomical because of their ongoing expenses. In other countries such as US, coal and oil industries have also struggled to expand. Back at home, the Adani mega coal mine in Queensland has a huge financial risk attached to it, yet it is heavily backed by the federal government. More than half of the coal mines in Queensland are currently running at a loss. There are too many uncertainties in the coal industry, and renewable energy is the natural solution. Developing renewable energy industries will expand the job market, and an increase in investments will ensure clean energy that is highly accessible to Australians. Given that solar and wind energy are both cheaper ways to generate electricity, together with the fact that the demand for coal is declining, the switch from non-renewable energy to renewable energy will certainly ensure economic growth for Australia. If the government is still in doubt, just look at the examples around the world: US has terminated coal mining leases, and its solar and wind sectors have been rapidly growing. China, Germany, and the UK have all financed in large wind arrays last year. With adequate funding

In This Case Study They shows the Zie Energy is Fast Growing Companyin customer base since past 15 years. In the past 2 years, Zie customer base increased by 1.6 million and become a largest retailer. After they got challenges for call center operators who often needed to resolve customer enquires regarding gas, electercity,or solar bills. So, in 2012 they launched the retail transformation Project.

Also, it will make the country ill-equipped to deal with the consequences of global warming. We have mentioned previously that Australia is the driest country on earth, Australia has experienced significant shifts in weather patterns. The strategic step that has been developed, which is far from the basics of climate change step. Ie, work to adapt to new methods suitable for the current environmental situation and any new environment. I see that there is for them to do a lot of work and effort to understand the problem. The world needs the climate models to adapt and the reduction of this research there may be impacts throughout the region. The Australian Government is obviously changing

I believe that New Zealand’s energy supply is secure for the future. From my research, I have found that from 1974 to 2009 the electricity demand has more than doubled in size. Currently, most of New Zealand’s energy is generated from renewable sources which mean that it can be used by future generations to come; we do not need to be concerned that they will cease to exist.