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‘Just get used to the pain’ as sky-high energy prices look set to stay

Wholesale power prices will stay sky-high on the nation’s east coast and there’s no end in sight, a report from the Grattan Institue says.

The report suggests inflated electricity prices will be the new normal, with prices spiking 130% between 2015 and 2017.

“In other words, just get used to the pain,” says Chris Kenny.

What’s worse is policymakers can’t do much to force prices down, with the institute stating the wholesale market is “broken” and no “silver bullet” can fix it.

Electricity expert from Regulation Economics, Alan Moran, says “two decades of appalling government policy” has created the situation we’re in now.

“We were the cheapest electricity market in the world more or less. We’re now one of the dearest.

“It’s insanity that this has occurred in a market that is so well blessed with resources.”

Alan tells Chris it’s only a “matter of time” before our industry shuts up shop and heads elsewhere.

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