The resilience of Australia’s electricity infrastructure is being undermined by a chronic pattern of underinvestment in maintenance and upkeep, the result of rent-seeking by private electricity producers and a deeply flawed regulatory system.
Key findings:
- Maintenance and operating costs across the system should be increased by at least $1 billion per year to match historical levels of real spending per electricity customer
- Real per capita operating and maintenance expenditures have been slashed by 28% (in distribution) and 33% (in transmission) compared to 2006 levels
- The electricity industry is allocating just 15% of its revenues to capital spending, down from 25% in 2007
- There are now 40% more office managers and professionals working in the industry than electricians
- Real output per hour worked in electricity has fallen one-third since 2007 – worse than any other sector
“The stresses on Australia’s electricity grid are becoming more severe. We should be investing more in the quality and safety of the grid, not less,” said Dr. Jim Stanford, director of the Australia Institute’s Centre for Future Work.