‘Among the many failures of micro-economic reform in Australia, the failure of the NEM has been the most spectacular. Not only have none of the promises of reform been delivered but the price increases [that] reform has driven have been used as evidence to obstruct the shift to a decarbonised electricity supply.’
The review was a scam. It used an inflated discount rate to deflate the estimated net present value of the FTTP option. It used a false shortened timeframe for an MTM rollout to inflate the NPV of the MTM. The long-term benefits of FTTP were buried under a mountain of propaganda.
Ridge concludes (p.235):
[The third-rate outcome results from] a combination of political opportunism and partisanship on the part of the Coalition Government and its intellectual fellow travelers, the mobilisation of market fundamentalist rhetoric to delegitimise the Labor Government’s NBN and a re-shaping of the NBN in line with the interests of Telstra. Previously facing the loss of a significant part of its business, Telstra, in receipt of billions of dollars of government funding for its “end of life” infrastructure, has emerged as the most significant beneficiary of the current NBN.