admin /10 May, 2007
Goverment subsidies to some of Australia’s electricity generation companies are so big they exceed the profits made by those companies
Government subsidies to some of Australia’s electricity generation companies were so big they exceed the profits made by those companies, a report on energy and transport subsidies says. Government subsidies appear to be creating profits for coal-fired electricity generators.
• "Macquarie Generation, which operates the Liddell and Bayswater coal-fired power stations, earned a beforetax profit of $267.1 million in 2005-06 …
• the annual fuel subsidy to Macquarie Generation is between $122 million and $304 million," the report says.
Government support for the coal industry and coal-fired electricity was so generous that in some cases it has led to the construction of coal-fired power plants when other types of electricity generation would have been cheaper, the report by the Institute for Sustainable Futures at the University of Technology Sydney has found, said The Sydney Morning Herald, 8/5/2007, p. 7.
Worth close to $10 billion:Subsidies to fossil fuel energies, worth close to $10 billion, result in a serious market distortion, create an unfair disadvantage to renewable energy, and help increase greenhouse gas pollution, says the report, written by the institute’s research principal, Chris Riedy, and commissioned by Greenpeace. The report identified energy and transport subsidies in Australia during 2005-06 of between $9.3 billion and $10.1 billion.