01/09/2026
FULL REPORT -AUSTRALIA'S BROKEN POWER INDUSTRY
(5 minute read)
We Were Promised Cheaper Power. Instead, We Sold the Family Silver — It’s Time to Take Electricity Back
For more than 30 years, Australians have been sold the same economic fairy tale: privatise the electricity industry, introduce competition and household power bills will come down. Governments were told that private companies would be more efficient, competition would drive prices lower and consumers would be the big winners. At the same time, governments could pocket billions from selling public assets and use the money to pay down debt or fund other priorities. It was presented as economic common sense, and anyone questioning the sell-off was often dismissed as being stuck in the past.
But after three decades, Australians have every right to ask what happened to the great promise of cheaper electricity.
Because the electricity market we ended up with is hardly the efficient, competitive paradise that was advertised. Australians face complicated power bills, confusing retail plans, network charges, wholesale-market volatility and prices that can place enormous pressure on household budgets. Governments still have to regulate the industry, intervene when markets fail, provide assistance when electricity becomes unaffordable and invest heavily in the infrastructure required to keep the system operating.
Meanwhile, private companies continue to make money from an essential service that every Australian household and business is forced to purchase.
At some point, we have to admit that the experiment deserves to be reconsidered.
We sold public assets and then watched the bills continue to rise
Let’s be honest about what privatisation actually means. When governments sell an electricity generator, network or other public asset, the Australian public receives the sale proceeds once. The government gets its cheque, the money can be used to reduce debt or fund other spending, and politicians can announce that they have delivered a successful asset sale.
But the asset doesn't disappear.
It continues producing electricity. It continues generating revenue. It continues charging customers. It continues to have economic value for decades.
The difference is that after privatisation, that income no longer belongs to the public.
Instead, some of the money paid by Australian households and businesses can ultimately become private revenue and shareholder returns.
That is the part of the privatisation debate that has too often been ignored. Governments were happy to celebrate the billions received when the assets were sold, but Australians should also ask how much income those assets could have generated had they remained publicly owned.
We didn't just sell power stations and electricity networks. We sold future income.
And once those assets were gone, buying them back became far more expensive.
Electricity isn't an ordinary commodity
The defenders of privatisation often talk about competition as though electricity is the same as buying a television, a pair of shoes or a takeaway meal. If one retailer charges too much for those products, consumers can walk across the road and buy them somewhere else.
Electricity doesn't work like that.
You cannot decide to have a different set of power poles outside your house because you don't like the price charged by the company operating your local network. You cannot build your own transmission network to compete with the existing grid. In many parts of the system, consumers are effectively dependent upon infrastructure that functions as a natural monopoly.
That should have been a warning before these assets were sold.
Instead, governments created a system where private businesses could own critical infrastructure while governments remained responsible for regulating them and consumers remained responsible for paying them.
We then built an enormous regulatory framework around the private market to try to make sure those companies did not abuse their monopoly position.
Think about how absurd that is. We sold the public asset, handed control to private interests and then created an army of regulators to make sure the private owners behaved in the public interest.
Perhaps the original idea was flawed.
Where is the promised competition?
The electricity retail market has certainly produced competition between retailers, but competition between retailers is not the same thing as competition over the infrastructure itself.
Australians can spend hours comparing electricity plans, searching for discounts and trying to understand complicated tariffs, but underneath all those competing brands sits the same physical electricity system.
The poles are still the poles. The wires are still the wires. The transmission infrastructure is still the transmission infrastructure.
What has changed is who owns it and who receives the financial return.
And this is where the ideology of privatisation runs into the reality of essential services. Private businesses have every right to seek profits. That is how capitalism works. But when the commodity being sold is something every household and business absolutely requires, governments have to ask whether maximising private returns should really be the overriding objective.
Why should the Australian public have to pay private shareholders a return simply for accessing infrastructure that was once owned by the Australian public?
That is a legitimate question, and it deserves a serious answer.
The consumer was supposed to be the winner
The great political justification for privatisation was always the consumer.
We were told that private companies would compete for customers, reduce costs and innovate. Lower costs would supposedly flow through to households and businesses.
Yet when Australians open their electricity bills, many are not thinking about the wonders of competition. They are thinking about how they are going to pay the bill.
Of course, not every dollar of a modern electricity bill can be blamed on privatisation. International fuel prices, the transition away from coal, renewable investment, transmission infrastructure, weather events and broader energy-market conditions all matter. Anyone claiming otherwise is oversimplifying a complicated industry.
But that is not the point.
The point is that privatisation was sold as part of the solution.
If private ownership was unable to deliver the cheaper electricity Australians were promised, then why should we continue treating private ownership as the unquestionable answer?
Look at what happened when governments kept ownership
Australia provides an interesting comparison because not every state followed exactly the same path.
Some states went much further in selling electricity assets than others, while Queensland, Western Australia and Tasmania retained significant public ownership in parts of their electricity systems. The experiences are not identical, and there are plenty of factors beyond ownership that influence prices, but the differences demonstrate that Australia did not have to follow a single privatisation model.
That matters because it destroys the idea that selling electricity infrastructure was inevitable.
It wasn't.
It was a political choice.
And if it was a political choice, it can be reconsidered.
The energy transition gives us another chance
There is now an even bigger reason to rethink the ownership model.
Australia is entering a massive transformation of its electricity system. Coal-fired power stations are ageing, renewable generation is expanding rapidly, batteries are becoming increasingly important, transmission networks need enormous investment and governments are planning for an electricity system that will look dramatically different from the one we inherited.
Billions upon billions of dollars will be invested over the coming decades.
The question Australians should be asking now is who should own the infrastructure of that future?
Do we want to repeat the mistakes of the past by allowing strategic public infrastructure to be transferred into private hands, only to spend decades regulating it and watching the revenue flow elsewhere?
Or do we finally learn the lesson and make sure Australians retain ownership of the infrastructure being built with enormous amounts of public money?
This is where governments have an opportunity to change direction.
Instead of simply subsidising private investment, governments can build public renewable-energy projects, expand publicly owned generation, invest in storage and retain strategic ownership of transmission infrastructure. They can create publicly owned electricity corporations capable of competing in the market while operating under strict transparency and performance requirements.
The energy transition could become the beginning of a new era of public ownership rather than another round of asset sales.
Bringing power back into public hands doesn't mean confiscation
There will inevitably be people who hear the word "nationalisation" and immediately imagine governments marching into private companies and taking their assets.
That isn't what a sensible policy needs to mean.
Australia could progressively rebuild public ownership over decades. Governments could purchase strategic assets when they come onto the market, acquire infrastructure when existing concessions expire, establish new publicly owned generation capacity and use public investment to build the electricity infrastructure Australia needs for the future.
Assets could be purchased through negotiated transactions rather than confiscated.
Yes, it would cost money.
But so did privatisation.
The difference is that instead of spending billions simply subsidising or supporting private infrastructure, the public would acquire assets that continue to generate economic value.
We would be buying something that Australians could own for generations.
Imagine if the profits stayed in Australia
Imagine an electricity system in which a greater share of the returns generated by generation, transmission and distribution remained in public hands.
That money could help finance new infrastructure. It could support investment in renewable generation and storage. It could strengthen the national grid. It could reduce the need for taxpayers to continually provide subsidies to private projects. And, with the right policy framework, it could ultimately put downward pressure on the cost of providing electricity.
Instead of asking how much profit can be extracted from Australian electricity consumers, governments could ask how much value can be returned to Australian consumers.
That is a completely different philosophy.
It changes the purpose of the electricity system from "How much money can this asset make?" to "How much value can this asset deliver to Australia?"
This isn't about socialism. It's about common sense.
The argument for public ownership should not be dismissed as some ideological battle between socialism and capitalism.
Australia already accepts that certain essential infrastructure should have a strong public role. Governments build roads, hospitals, water infrastructure, schools, ports and other strategic assets because they understand that some things are too important to leave entirely to the pursuit of private profit.
Electricity belongs in that conversation.
Private businesses can still play a role. They can build projects, manufacture equipment, develop technology and compete for contracts. There is no reason to eliminate private enterprise from the electricity sector.
But ownership of strategic infrastructure is a different question from participation in the market.
Australia can have private companies competing within an electricity system while the Australian people retain ownership of the infrastructure that is too important to surrender.
The great privatisation experiment deserves a verdict
For decades, politicians told Australians that privatisation was necessary because government was supposedly incapable of running modern businesses. We were told that private ownership would bring efficiency, competition and cheaper prices.
After decades of experience, we should stop treating those promises as economic scripture.
The evidence does not show that private ownership automatically produces cheaper electricity. It certainly does not justify the claim that selling public electricity assets was some guaranteed pathway to lower household bills.
And if the promised benefits never materialised to the extent Australians were told they would, then there is nothing radical about reconsidering the policy.
What is radical is continuing to do the same thing and expecting a different result.
Australia has already sold much of the family silver. We should not make the mistake of selling what remains.
Instead, governments should develop a long-term strategy to rebuild public ownership of strategic electricity infrastructure, particularly as Australia spends enormous sums constructing the energy system of the future.
The objective should not be to create another inefficient government bureaucracy. It should be to create a modern, commercially disciplined public electricity sector that operates transparently, competes where appropriate and ultimately answers to the Australian public rather than shareholders.
Because when an Australian family turns on the lights, they shouldn't be thinking about international shareholders, corporate profits or complicated market structures. They should be able to expect something much simpler: reliable electricity at a price ordinary Australians can afford.
For three decades, we were told privatisation would deliver that.
It hasn't delivered enough.
So perhaps it is time to stop defending the experiment and start learning from it.
Australia is a wealthy, resource-rich nation. We have the sun, the wind, the technology and the resources to build one of the world's great energy systems. What we need now is the political courage to ensure that system belongs, at least in its strategic foundations, to the people who ultimately pay for it.
We were told selling the electricity system would make Australians better off.
After 30 years, perhaps the time has come to buy back what we should never have sold.