20 October 2010

Higher power costs the result of population growth – MP

MELBOURNE’Selectricity prices have more than doubled in real terms over the past ten years, and will only become more expensive as population increases, Melbourne federal MP Kelvin Thomson said at a recent public forum at Richmond Town Hall.

Speaking at a forum on Population: Melbourne’s Planning Puzzle on 7 November 2010, Mr Thomson said that although “you might think” that a growing population would lead to economies of scale and lower electricity prices, “you would be wrong”.

“Instead of rising population causing lower prices, it leads to a need for extra infrastructure and therefore higher prices,” he said. “And the more crowded a city becomes, the higher the cost of doing business. Congestion costs kick in, and just maintaining electricity infrastructure becomes more expensive.”

Click here to read the full text of Mr Thomson’s speech.

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