Regulated and merchant interconnectors in Australia: SNI and Murraylink revisited

Stephen Littlechild

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This paper examines the history of the various actual and proposed interconnectors between New South Wales and Victoria into South Australia. It covers the period from the earliest proposal for a regulated interconnector to the recent Victoria Supreme Court review and the latest ministerial proposals. It finds, inter alia, that the Supreme Court decision is likely to have strengthened, in a beneficial way, the regulatory regime for dealing with merchant interconnectors and the obligations on incumbent transmission companies. It finds that none of the proposals for regulated interconnectors did or would have passed the regulatory tests as formulated in terms of aggregate benefits to all market participants. It finds that neither of the merchant interconnectors (into South Australia and Queensland) are likely to have been profitable. It sees a possible explanation for the construction of regulated interconnectors in terms of the benefits to customers, or in terms of bringing about a single competitive market. Above all, it illustrates the political context in which decisions on interconnectors have been made, and the need to take account of such motivations when comparing the likely effects of regulated interconnectors versus merchant interconnectors

Keywords: merchant investment; interconnectors; electricity; regulation; transmission (search for similar items in EconPapers)
JEL-codes: L51 L94 Q48 (search for similar items in EconPapers)
Pages: 52
Date: 2004-01
New Economics Papers: this item is included in nep-com and nep-his
Note: CMI37, IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.econ.cam.ac.uk/electricity/publications/wp/ep37.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.econ.cam.ac.uk/electricity/publications/wp/ep37.pdf [301 Moved Permanently]--> https://www.econ.cam.ac.uk/electricity/publications/wp/ep37.pdf)

Related works:
Working Paper: Regulated and merchant interconnectors in Australia: SNI and Murraylink revisited (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:0410

Access Statistics for this paper

More papers in Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge
Bibliographic data for series maintained by Jake Dyer (jd419@cam.ac.uk).