On average, excluding publicly owned Essential Energy, network providers are earning a 13-14% super-profit across the east coast and South Australia.
By contrast, Essential Energy, an NSW Government-owned corporation that services rural NSW and parts of southern Queensland, charges no super-profits whatsoever actually taking a 1% haircut on return on investment according to Orme’s analysis.
Another offender is Ausgrid, again formed in 2011 when the NSW sold off its network assets.
SAPN, or South Australian Power Networks, sold by the South Australian government to controlling shareholder Hong Kong-based Cheung Kong Infrastructure Holdings, and Australian investment fund Spark Infrastructure charges a 15.5% super-profit to its customers.
Since our report was published last October, no action has been taken to stem supernormal monopoly network profits.
Source: Poles and wires super-profits causing energy price spikes, and foreign takeovers