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The western Australian example just demonstrates why petrostates are wealthy - if you have big energy resources you can make stuff cheaper, surprise! And realistically all that's really happening there is west Australia is effectively imposing a tax on gas profits to subsidize the grid. There's no magic success here - just a redistribution of gas profits to electricity consumers.

I don't actually think the Australian grid is a good example of privatisation failure. There's little proof that we have meaningfully lost anything aside from the marching cry of the left.



WA owns its electricity generation and supply companies, so no it’s not just a tax, it’s nationalised infrastructure and it works great for us.

It’s not just cheaper, it takes the privatised profits off the table and instead feeds them back.

It’s not magic, it’s pretty good sense though, and it serves the people of the state well.


> There's little proof that we have meaningfully lost anything

Did we gain anything? I ask in earnest, I don't know.

I can guess that the cost of running, maintenance, etc are now "not a cost of the state", but the cost doesn't just disappear, it was always on the consumer via tax or bills (or tax and bills, hopefully in a way that sums to the same cost!).


In theory, you remove government overhead. Government bureacracies are infamous for expanding without the requirement to make a profit as a constraint.

As it pertains to power, People tend to promote government as a means to make it cheaper - but this is sort of a fallacy - the only way the government can do it cheaper is if it's operationally more efficient to a significant degree. I don't see how a government achieves this. Private energy generators are usually not very profitable - the people making money were commodity producers, recently, not electricity generators.




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