Is Selling Electricity Below Cost, Then Paying People Not To Buy It A Good Idea?


(Ken Taylor) #1

I’m of the view that selling electricity below cost and then paying people not to consume it is a beautiful scam because the idea suffers a fatal flaw but am I wrong?


(Ken Taylor) #2

Following discussion at the meeting this week I have written some more on the economics of paying people not to use electricity.

The ACCC Retail Electricity Pricing Inquiry Preliminary report is quite positive on demand response. It doesn’t seem to consider the perverse version of demand response. As discussed, I am working on an MHV submission to the ACCC along the lines that the ACCC should look more critically at this concept and modify the final report accordingly.


(Ken Taylor) #3

A draft ACCC submission has been written. As suggested by @eyal I have tried to capture the ideas with as little text possible. I have provided extensive links to reference material for a deeper understanding. Please suggest amendments. This must be submitted before November 17.