Monday, August 10, 2009

Trading carbon for disaster - Govt plots against people!

What is it called when a government plots against its people? When people plot against the government, it is called treason; but the reverse...??

From Business Spectator - Commentary by Robert Gottliebsen 7 Aug 2009

-- “When a nation or a company is doing something stupid there will be a trigger that explodes the wrong strategy. In this case it is the Latrobe Valley brown coal power stations. These stations have huge debt repayments and emit a lot of carbon so the Canberra plan was that they should go broke and be bought at token prices.

-- … “Latrobe Valley companies will halt long term maintenance. TRUenergy has already announced this, but at least one or two other Latrobe stations follow … who in their right mind would spend cash when they have no idea whether the generators will be viable in the short and long term because of carbon charges and carbon policy is not known. Last summer every Latrobe Valley station went without a break down – the first time that has happened. This summer the odds are that they will break down. The companies are gradually abandoning long term contracts and going for the spot market which means that when there is a power station failure they will go into an Australian wide bidding process for power, sending prices through the roof. However, there is a limited amount that can be sent to Victoria so Victorians will have the main burden of the price hikes and blackouts."

-- “The banks will have the power to take control of at least one Latrobe Valley power station within six to nine months. They will be trying to extract as much money from the station as possible so will also cease long term maintenance and go for spot prices. If Australian and Victoria think the blackouts next summer are going to be bad wait for the following year when the full impact hits the nation.

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