How timely, targeted and temporary is the energy market intervention?

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 90%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

OPINION: How does the government’s energy plan measure up against the three-part test economists use to judge unusual interventions into the market?

Economists usually hate market intervention, especially heavy-handed intervention. But I’ve been calling for it in electricity and gas markets for many months.

Equally, the government was elected more than six months ago, and this problem was already obvious then. But it failed to act in the October 25 budget: it merely set out problems without providing any solutions.. That’s why the timeline for industry consultation is, erm, this week. The hard-to-avoid problem is coal. Electricity markets are a force multiplier. The way they work means that if the cost of the highest price electricity in the market comes down, then the entire market becomes cheaper.

That runs slap bang into the same problems created by the last government’s cut to fuel taxes that ran for six months from March to September.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Exactly, solving inflation utilising two opposing economic forces reveals a Marxist renamed Socialist renamed Democratic Socialists renamed Labor trying without success to get as far away from the reality of economic diplomatic naivety they will always inform=real income reduced.

It only seems unusual because it’s new. In two years time it won’t seem unusual at all, and the three-part test won’t apply. It will be just how we do things.

I'm not so sure common sense and the common good are the driving forces here. Looks more like its politics, ideological agenda, factions, unions, partisanship, disagreeable partnerships with the Greens and virtue signalling. But hey.... I'm no economist.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘There is need for government intervention’: PM says free market failed on energyAnthony Albanese has intensified a debate about state power and his willingness to impose tough laws on business. What 'free market' and no, the government has failed on every issue, completely and consistently. No more power going 8nto the hands of the corporate sell outs. Its not a free market if ypu limit supply though is it? why did WA reserve their domestic gas supply when the eastern states took the easy money route
Source: smh - 🏆 6. / 80 Read more »

‘There is need for government intervention’: PM says free market failed on energyPrime Minister Anthony Albanese has backed the case for federal intervention in open markets after a bruising debate with energy exporters on his new regime to cap coal and gas prices.
Source: theage - 🏆 8. / 77 Read more »