Hollywood Power Struggle

Bad Ideas, Scary Stuff – February 1st, 2008 by Kristen

Mr Iemma and Costa - maybe you should take a wider view:

During 2000/ 2001, the state of California had it largest series of rolling blackouts yet, resulting in a declaration of a state of emergency.

This had a profound impact on the state’s economy and its citizens. A notable example is that many internet companies in Silicon Valley, the heart of America’s tech industry, were without power even to maintain their servers, and whole chunks of the internet went offline.

How could such problems (reminiscent of less-developed countries) happen in a state economy larger than Australia’s, glittering California, the home of Hollywood and Silicon Valley?

There are a variety of factors relating to the California energy crisis, but significantly, the electricity industry is largely privatised and had recently been rapidly deregulated. An inability to generate enough power within the state was the main reason that for days areas of the state were without power. The private companies sometimes couldn’t even afford to pay their energy suppliers, due to financial mismanagement.

In Australia, Victoria, whose energy sector is now also privatised, the same problem has begun to arise. Victoria needs to generate more power to stop the blackouts that have begun to roll out over the state as summer heats up. Like California, it can access power surpluses from other states via the national grid, but these are not enough to prevent the regular forced blackouts plaguing Victorian businesses and homes.

In contrast, Tasmania’s power supply is entirely state owned and is growing in its ability to meet its energy needs. It is also Australia’s largest renewable energy supplier. Over 90% of its electricity needs are currently being met with hydro and wind power.

It is continuing to invest in new ventures, including a natural gas supply, development of more wind farm projects and ensuring that power supply is being provided in more remote areas. It also supplies the national energy grid, which shares surplus power between the states (excluding WA and NT), predominantly, Victoria.

Tasmania’s state power service offers an excellent example of how state run companies can be profitable and reliable. Victoria and California (which continues to suffer from power shortages) are examples of a growing international problem of state power services being privatised and then falling apart.
We here at Dodgy Press strongly believe that NSW doesn’t need to follow the path of Victoria and California. With a future thinking focus on renewable energy sources and development of infrastructure, NSW could have a government power service that puts the needs of the state - rather than profits - first.

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, Australian Labor Party, Blackouts, Dodgy Politician, Electricity Industry, Energy Crisis, Enron, Michael Costa, Morris Iemma, Privatisation, Renewable Energy

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