Posted by Big Gav
The SMH has an article on a report from the Energy Supply Association of Australia, saying power companies are reluctant to invest in new generation capacity until the uncertainty over carbon pricing is removed - Carbon doubts cut $10b from power investment plans .
POWER companies have slashed $10 billion from their spending plans because of growing uncertainty over carbon policy, an industry survey reveals.
According to the Energy Supply Association of Australia, utilities expect their capital expenditure on new power stations in the next five years will be $8.2 billion, down from $18 billion last year.
The industry, which has complained that repeated delays to emissions trading have stalled investment, blamed the fall on carbon policy uncertainty and tighter access to credit.
The survey of 31 energy companies comes at a time when utilities are facing growing investment demands to upgrade an ageing network and resolve environmental concerns.
Some industry sources say power companies will struggle to raise enough money from capital markets until a clear price on carbon has been established.