The Political Economy of Regulating Retail Electricity Price Caps in a Rising Cost Environment

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Simshauser, P
Laochumnanvanit, K
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2012
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Abstract

Australia's competitive energy market experienced sustained network tariff increases at multiples of the inflation rate from 2008 to 2012. This became a toxic issue for policymakers and in one region resulted in regulated tariffs in the competitive market being set below long-run costs. Doing so risks damaging competition, investment flows, and following any price correction, a subsequent media assault.

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The Electricity Journal

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25

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9

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© 2012 Elsevier. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.

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Applied economics

Environment and resource economics

Policy and administration

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