#Power prices prompt calls for overhaul

There are increasing calls to overhaul Australia’s electricity sector as electricity prices skyrocket and governments try to reduce carbon emissions, ABC News reports.

A massive $45 billion over five years is being spent to upgrade and maintain the network, and that cost is being passed onto the consumer.

Because it is based on burning coal, the electricity network is Australia’s biggest polluter, producing one third of national carbon emissions.

Experts say one of the problems is that power companies do not have a financial incentive to stop people using so much energy.

RMIT Adjunct Professor Alan Pears says Australia has to reduce electricity demand at all times of the year.

"The rules of the energy market need to change in a pretty serious way so that energy networks have a financial incentive to help people to save energy rather than to get them to use more," he said.

"We have examples in other parts of the world where energy networks are paid on a different basis and are paid to achieve societal outcomes rather than a very simplistic economic model."

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