Stimulus that retrofits housing can reduce energy bills and inequity too



Nicola Willand, Author provided

Nicola Willand, RMIT University; Bhavna Middha, RMIT University; Emma Baker, University of Adelaide; Ralph Horne, RMIT University, and Trivess Moore, RMIT University

Stay-at-home orders and the economic crisis have increased the burden of energy costs on lower-income Australians. Poor housing quality and unequal access to home energy efficiency are hurting our most vulnerable households. With the next stage of the national recovery program expected to include cash grants for home renovation, now is the time to turn to housing retrofits that support health and well-being as well as boost jobs.

Staying at home during the COVID-19 pandemic increases households’ energy consumption and costs. As one in ten Australians might lose their jobs, the pandemic is adding to the energy hardship of people who were already struggling to pay their bills.




Read more:
The other 99%: retrofitting is the key to putting more Australians into eco-homes


Access to energy is essential

Cold housing is a known health risk. Lancet research attributes about 7% of Australian deaths to cold weather. Warm housing reduces the risk of airborne infections, as well as providing comfort for working and studying.

Laundry temperatures of 60-90°C are needed to limit the spread of the coronavirus. But this conflicts with common energy-saving advice of washing clothes in cold water. Self-isolation also means heating more and not being able to close off unused rooms.

Low-income households, renters and older people are more likely to live in energy-inefficient dwellings. In fact, most Australian housing has poor energy efficiency.

When people on low incomes live in such housing, they are doubly disadvantaged by the challenges of needing more energy and not being able to afford it. Households with older people, people with chronic illness and children are particularly susceptible to energy stress and poor health outcomes.




Read more:
Forget heatwaves, our cold houses are much more likely to kill us


Stop-gap measures

The temporary stop to disconnections in some states recognises that access to electricity and gas is a basic need and essential for health and well-being. This guaranteed energy, and a commitment by Australian Energy Council retailers not to charge penalty fees for late payment, will give affected households some relief.

Even if power bill payments are deferred, households must still eventually repay their mounting debts.
Shutterstock

However, bill payment will only be postponed until the end of July. Much of the expensive heating period will still be ahead of us. And after that households will face the costs of cooling homes in summer.

Energy debts are going to accumulate as a burden to low-income households into the future. Energy retailers might find it ethically difficult to resume disconnections, but customers will have to repay their debts. This will only be possible if their overall financial position improves and/or the cost of their energy decreases.

Income support via energy concessions can ease bill stress. However, taxpayer money may be better spent on providing sustained relief by improving the energy performance of homes. Acknowledging housing as essential infrastructure would enable economic and social progress.




Read more:
Is social housing essential infrastructure? How we think about it does matter


A lasting solution to energy poverty

A long-term stimulus package for retrofits would be welcome. The focus should be on comprehensive retrofitting to reduce energy demand, thus helping households to repay debt. Comprehensive or “deep retrofits” combine simple activities such as draught proofing with insulating ceilings, floors and walls, upgrading heating and cooling appliances, and installing solar PV systems.

Many retrofits overlook the opportunity to install underfloor insulation when restumping a house.
CSR Bradford/YouTube screenshot

Initial findings of our HEET (Housing Energy Efficiency Transitions) research show simple retrofit measures are cheap and easy to do, and DIYing is popular. However, some opportunities are missed because householders are not aware of what can and should be done. A common example is failing to install underfloor insulation when restumping the house.




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Thinking about a sustainable retrofit? Here are three things to consider


Riding the current wave of home improvements, innovative retrofit initiatives may guide people in their DIY efforts. However, some training for proper DIY installation and the use of skilled tradespeople for technical installations is needed for safety and quality.

Spread retrofitting benefits more widely

Federal and state subsidy schemes already promote retrofitting. But recent research suggests low-income households and renters have benefited less. The one-in-three households that rent their homes should not be missing out.




Read more:
As power prices soar, we need a concerted effort to tackle energy poverty


Putting people at the centre of retrofitting programs will provide healthier homes and help tackle unemployment. This means providing retrofit assistance to those who need it most and training people in retrofit skills.

Previously, the boom in new housing construction inhibited retrofitting. This might change following the COVID-19 crisis. A long-term retrofit program would be an opportunity to upskill builders and to retrain newly unemployed Australians, particularly the young people who have been most affected by job losses. An expanded retrofit workforce is needed to reach the large number of inefficient homes.

So-called “Green Deals” have already been proposed in Europe, the US and the UK. Green construction stimulus packages in Australia have successfully supported economic recovery before.
The aim should be to spawn a new industry of energy-efficient builders who will continue to contribute to the upgrade and upkeep of Australian housing. This could help cut greenhouse gas emissions, promote public health and improve our resilience to crises.

A nationwide stimulus package to provide healthier and more energy-efficient homes would help the most vulnerable and boost the economy.The Conversation

Nicola Willand, Lecturer, School of Property, Construction and Project Management, RMIT University; Bhavna Middha, Research Fellow, Centre for Urban Research, RMIT University; Emma Baker, Professor of Housing Research, School of Architecture and Built Environment, University of Adelaide; Ralph Horne, Deputy Pro Vice Chancellor, Research & Innovation; Director of UNGC Cities Programme; Professor, RMIT University, and Trivess Moore, Senior Lecturer, School of Property, Construction and Project Management, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Finally, your electricity bill looks set to fall. Here’s how much you could save


The renewables revolution is starting to pay off: our electricity bills are set to fall.
AAP/Julian Smith

Tim Nelson, Griffith University and Alan Rai, University of Technology Sydney

Household electricity bills in Australia have increased sharply in the past decade. But new official figures show they are projected to fall markedly – in some cases by 20%.

In-house modelling we conducted at the Australian Energy Market Commission (AEMC) shows that a wave of new renewable energy entering the electricity grid is pushing down retail prices. The findings are contained in a report released today.

Retail electricity bills are projected to fall by 7.1% between 2019 and 2022, based on the national average. In southeast Queensland, household bills are expected to fall by 20% in that time – an average annual saving of A$278. Falls in other states are projected to be smaller.

An electricity tower on the Brisbane skyline. Retail electricity prices in Queensland are projected to fall by 20%.
AAP

A quick history

The National Electricity Market (NEM) is one of the largest interconnected electricity systems in the world. It comprises about 40,000km of transmission lines and cables, supplying around 9 million customers in all Australian jurisdictions except Western Australia and the Northern Territory.




Read more:
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To understand the significance of our projection for electricity prices, a brief history recap is helpful.

Price trends since 1955 can be divided into three distinct periods:

  • 1955 to 1998, before the east coast’s National Electricity Market (NEM) was established. Prices fell due to economies-of-scale achieved by building large coal-fired power stations and transmission lines

  • 1999 to 2009, the first ten years of the NEM, when prices declined due to the introduction of competition between generators, improved price transparency and pricing efficiency

  • 2009 to 2019, when retail electricity prices doubled.

The increase between 2009 and 2019 was due to three factors: a significant and largely unnecessary rise in spending on network infrastructure (“poles and wires”); uncertainty about climate policy; and a large increase in wholesale prices.

The latter was triggered by both rising coal and gas prices and sudden exit of coal-fired power generators, and created a disorderly transition to firmed renewables.



What’s happening now

Electricity prices are determined by five main factors:

  • wholesale costs: the cost of generating electricity from coal, gas, hydro, wind and solar
  • transmission costs: the cost of transmitting electricity across the country
  • distribution costs: building and maintaining the poles and wires in our streets
  • environmental costs: government policies that drive new investment in renewable and low-emission generation
  • retail costs: the cost of billing, customer service and managing the financial risks of operating in the wholesale market.

Our modelling shows that additional electricity supply is now putting significant downward pressure on wholesale prices. Across the country, prices are expected to fall by 7.1% from 2019 to 2022.




Read more:
Inducing choice paralysis: how retailers bury customers in an avalanche of options


This is due to a very large quantity of new renewable projects coming online, adding much-needed supply. In fact, at the time of our wholesale market modelling earlier this year, investors had committed to around 7,500 megawatts of new gas, wind, solar and hydro projects. For perspective, the largest coal-fired generator in the market today is around 2,000MW.

So what’s driving this new investment? The sudden closure of coal-fired power stations such as Hazelwood in Victoria took a lot of electricity from the system, leading to higher wholesale prices. This drove new investment in gas, wind and solar generation, which is projected to cause prices to fall.

Our modelling shows wholesale costs falling by 10-17% by 2022 across the NEM, which should flow on to the retail price paid by households.

An influx of new renewable energy, including solar power, is driving wholesale prices down.
Lucas Coch

How much you could save

The below table shows the projected fall in electricity bills expected in each state and territory in the NEM. They range from a 20% fall in Queensland to 2% in South Australia.



The figures vary between states because of the other factors which determine retail prices. For example, network prices are expected to fall in Queensland but increase in Victoria.

Environmental costs are also expected to fall across the NEM as subsidies such as the Renewable Energy Target wind down.

The wholesale market operates according to real time electricity supply and demand, meaning prices are likely to change across the day. Increased solar generation has long been expected to reduce prices in the middle of the day when solar farms are at maximum production. This is now happening.

In the past few months, this has even led to negative pricing – generators paying customers to stay in the system.

As shown in the chart below for Queensland, price reductions from 2019 to 2022 are most pronounced in the middle of the day, and most limited in the evening when electricity demand peaks but solar output is zero.



So what next?

A lot of work is required to ensure these projections are realised in the longer term. The Australian Energy Market Operator’s Integrated System Plan outlines the need for investment in new transmission infrastructure to ensure new supply can feed into the system. National energy authorities must also keep improving the design of the market beyond 2025.




Read more:
Australia has plenty of gas, but our bills are ridiculous. The market is broken


Electricity prices are not the only factor affecting the size of your bill; how much electricity you use is obviously also important. Policymakers must continue to enable customers to minimise their energy bills through measures that encourage energy efficiency, as well as lowering peak electricity demand.

Customers should also continue to shop around to get the best deal by visiting government comparison sites such as the Australian Energy Regulator’s Energy Made Easy and in Victoria, Victorian Energy Compare).The Conversation

Tim Nelson, Associate Professor of Economics, Griffith University and Alan Rai, Industry Fellow, University of Technology Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The dirty secret at the heart of the projected budget surplus: much higher tax bills



Bill shocks are the flipside of a surplus built on higher tax collections and tighter access to support payments.
Shutterstcok

Peter Martin, Crawford School of Public Policy, Australian National University

The budget is bouncing out of deficit and is set to stay in surplus for the decade to come.

That’s what the April budget and the final budget outcome for 2018-19 tell us, and Thursday’s report from the Parliamentary
Budget Office doesn’t say any different.

It doesn’t have much choice. The Parliamentary Budget Office is required to take the government’s surplus and deficit projections for the next four years as given, and to take its economic forecasts and tax and spending announcments for the next ten years as given, whether realistic or not.

What it is allowed to do, and does once a year in a publication entitled medium-term fiscal projections, is to set out the implications of those projections.

Those implications, spelled out on Thursday, show the projected budget surplus to be so fragile as to be unrealistic, except the parts that rely on much higher personal income tax collections.

That’s right: much higher income tax collections per person, even after taking into account the coming decade of legislated tax cuts.

Middle earners hit hardest


Parliamentary Budget Office

But it won’t be higher for all of us.

The middle fifth of earners will pay far more of their income in tax in ten years’ time under the government’s projections, according to the PBO’s calculations. Instead of paying 14.9% of their income in tax, by 2028-29 they will pay 18.8%.

That’s after taking into account the long-term tax cuts the government pushed through parliament in May and went to the election on.

Without those legislated tax cuts, they would have been paying an extra 6.3% of their income in tax. With the legislated cuts (and others pencilled in by the PBO to keep the government’s tax take within its promised ceiling) they will be paying an extra 3.9%.

Put another way, the government’s tax cuts will undo some of the damage caused by bracket creep as more of each pay packet climbs into higher brackets, but not most of it.

It’s the same for pattern for the second-lowest fifth of earners. They will move from paying 5.3% of their income in tax to 9.9%, a near doubling, which is taken is taken into account in the surplus projections.




Read more:
Those future tax cut promises… they’re nowhere near as big as you’d think


The second-highest fifth will move from paying 22% of their income in tax to 23.4%, even after the tax cuts. The bottom fifth, who don’t pay much tax, will move from paying 0.6% to 1.2%.

Highest earners escape

But workers in the top fifth, which at the moment is workers earning above A$90,000, won’t pay a cent more, at least not on average.

The government’s projections, as spelled out by the PBO, have them paying less of their income ten years from today than they do today.

Put another way, they are the only fifth of the population that won’t be expected to wear pain to keep the budget surplus.



Parliamentary Budget Office

There are other contributors to the budget surplus. One is a pretty hefty assumed decline in growth in government spending over the next decade, amounting to 1% of GDP, taking government spending from around 24.9% of GDP to around 23.9%.

Much of it is projected to come from tighter eligibility criteria for payments, and measures to constrain their growth, something the PBO believes might be difficult to maintain:

The spending restraint seen over the past few years may be increasingly difficult to maintain over coming years given the length of time over which restraint has been applied, the pressures emerging in some spending areas, and the potential need for fiscal stimulus, noting that the projected improvement in the budget balance is mildly contractionary.

What it is saying, gently, is that it the longer the government attempts to restrain spending (for instance by imposing tough conditions on access to benefits and using debt collectors to recover alleged overpayments), the harder it will get.

And it is saying the government might need to spend in ways it hasn’t accounted for, including on measures to support the economy in the event of a downturn.

Budget conventions to the rescue

The projections assume the opposite of a downturn.

No blame should attach to this government for them, but our rather odd budget conventions dictate that the worse the economy is, the better the budget’s projections for economic growth. That’s right: the weaker our current economic growth, the stronger the budget’s projections for future economic growth.

The thinking is that over the long term, the economy should grow at roughly its long-term average growth rate. To get there when the economy is weak, as it is now, the budget assumes several years of stronger than normal economic growth to catch up.




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In this case it’s five years of stronger than normal economic growth.

The PBO contents itself with the observation that economic growth that was merely normal (or worse, remained weaker than normal) for some of those years would have a “significant and compounding effect on the budget position over time.”

The surplus is far from assured, and it shouldn’t be. The government might well find that it can’t and shouldn’t restrain spending on payments as much as is projected in the decade ahead, and it might find it needs to spend to support the economy.

It will almost certainly find that lifting the tax take on middle Australians from 14.9% of income to 18.8% is intolerable.The Conversation

Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Shorten would need non-Green crossbench to pass bills in Senate: Australia Institute


Michelle Grattan, University of Canberra

A Labor government would likely have to rely on at least one Senate
crossbencher besides the Greens to pass contested legislation, according to an analysis from The Australia Institute, a progressive think tank.

The analysis, based in part on polling but also on
historical data, suggests that, at best, after next year’s half-Senate
election the ALP and Greens combined could have 38 senators – although more likely they would have 37.

To pass legislation, 39 votes are needed.

Releasing the analysis, the institute’s director, Ben Oquist, said this
meant “the Centre Alliance, or independents like Derryn Hinch or a
potentially re-elected Jacqui Lambie, are likely to wield significant
power”.

The 2016 double dissolution produced a very large crossbench. The
larger quota required in a half-Senate election will make it harder
for micro parties and independents, as will some changes to the
electoral system made in 2016.

Most of the non-Green crossbenchers face election – and defeat.
Victorian senator Derryn Hinch, from the Justice Party, told The
Conversation’s podcast that he had got about 220,000 primary votes
last time but now would need about 400,000. It would be “very tough”,
said Hinch, who is campaigning on the slogan “unfinished business”.




Read more:
Politics with Michelle Grattan: Derryn Hinch on a national ICAC and the Victorian election


The Australia Institute says the Coalition and Labor are each likely
to pick up two seats in each state. The Greens are “well-placed” to
win a seat in each of NSW, Victoria, Queensland, Western Australia and
Tasmania, while One Nation is well-placed to win in Queensland.

“The remaining seat in NSW, Victoria, Western Australia and Tasmania,
and the remaining two seats in South Australia, are likely to be
highly contested,” the analysis says.

In detail, it says

…NSW – The Coalition, Labor and One Nation are competitive for the last seat.

… Victoria – Labor, the Coalition and Derryn Hinch are competitive for
the final seat.

…Western Australia – The Coalition and One Nation are competitive
for the last seat.

… South Australia – The Coalition, Greens, Centre Alliance and One
Nation are competitive for the final two seats.

… Tasmania – The Coalition and Lambie are competitive for the last seat.

“The polling by itself does not suggest that the Coalition will pick
up the third seat in any state, but our historical analysis suggests
that the Coalition is more competitive than the polls alone would
indicate”, the Australia Institute says.

“Another wild card is the high Independent/Other polling. Although
Jacqui Lambie and Derryn Hinch are contenders in their respective
states, there is also the outside but real possibility of independent
or minor party pick-ups in other states as well.”

The institute predicts a Senate after the election with the Coalition
having between 30 and 35, and the ALP 27-29. It predicts the Greens
having 8 or 9 seats, One Nation between 2 and 5, Centre Alliance 2-3,
Australian Conservatives one, and others between 0 and 2.

Since the last election the Senate has had many changes, in the wake
of the citizenship crisis and defections. The Morrison government
needs eight of the 10 non-Greens from the crossbench to pass
legislation opposed by Labor and the Greens.

Oquist stressed that predictions were harder than usual to make
because of the voting system changes and a volatile political climate.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

If you need a PhD to read your power bill, buying wisely is all but impossible



File 20180622 26567 u4uu4e.jpg?ixlib=rb 1.1
Energy bills are becoming to complex to understand.
Shutterstock

Bruce Mountain, Victoria University

A recent survey found that Australia’s power companies are less trusted than media companies, banks and telcos. Customers hate electricity bills – not least because they are so complicated. But we can learn much by analysing them closely.

One feature that deserves close scrutiny is the all-pervasive discount. In electricity retailing, all but 3 of the 28 active retailers use discounts in their retail offers.

In any kind of retailing, discounts give customers the impression that they are making a smart buy. This is often true, particularly in cases where it is easy to see and compare the discounted prices. But if it’s not easy to compare, customers may not realise if they’ve been duped.




Read more:
Australian household electricity prices may be 25% higher than official reports


With electricity bills, it is all but impossible for customers to know whether their discounted price really represents a good deal. This is because the discounts are ludicrously complicated – as are the base prices themselves.

Large businesses do not complain about retail electricity markets. This is because they have the capacity, either in-house or through consultants, to evaluate complex retail price structures. Advances in data science may yet make such expertise available to everyone.

Eye-wateringly complex

To fairly compare your bill, you must be able to adjust for the discount in your current bill, and also in all the alternative competing offers. Having worked with thousands of bills, I know the myriad ways discounts are calculated make this terribly difficult.




Read more:
A high price for policy failure: the ten-year story of spiralling electricity bills


Let us count the ways a discount may be applied:

  • some discounts are worked out as a percentage of usage charges while others are on the total bill

  • some discounts are before the receipt of concessions, others after

  • some discounts are before solar feed-in receipts, others after

  • few bills actually clearly state the discount rate, and some don’t state the rate at all

  • some discounts are only received on subsequent bills (so that if the customer leaves, the retailer avoids discounting their last bill)

  • some retailers offer several discounts in the bill but sometimes some apply after other discounts are taken off first

  • some will discount controlled load consumption, others not

  • some discounts are payable as rebates when the customer transfers to the retailer; other rebates are paid out over months and even years

  • some offer discounted amounts which are contingent on advance purchases of electricity, but the discount is not achieved unless purchases exceed the contingent amounts

  • some discounts in bills are not actually calculated in customers’ bills as the retailers say they are calculated

  • some retailers take up-front payments from customers and then feed those payments back to customers on each subsequent bill as if they are discounts

  • most discounts are conditional on customers doing something (usually paying the bill on time) but some are unconditional. Some bills have both conditional and unconditional discounts; others just one or the other.




Read more:
You’re paying too much for electricity, but here’s what the states can do about it


If that isn’t enough, electricity tariffs in Australia are stunningly complex commercial arrangements. They have daily charges and a wide range of methods for charging for consumption: flat rates; daily, monthly or quarterly block rates; time-of-use rates with two or three bands; combinations of time-of-use and block rates; one or more separate rates for controlled loads of different types; consumption rates that are seasonal; and now some bills with peak demand charges.

Solar feed-in rates offered by retailers often (but not always) vary depending on the receipt of subsidies. Most recently, some retailers have offered block rates for solar feed-in, or different prices for the first tranche of solar power feed-in.

What can you do?

It is no surprise that few customers have the time or skill needed to choose wisely. While this is not a peculiarly Australian phenomenon – evidence from abroad shows that lots of money is left on the table even when customers try to buy well – we think it is worse here. Our research is working to quantify this in Australia.




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Government price comparison sites, like Energy Made Easy, are often advanced as solutions. But a 2017 competition review found that these have had limited success in Australia and elsewhere.

Complexity trips up governments too, and retailers work hard to persuade the regulators and policy makers to their point of view.

Regulating complexity away through standardisation is also suggested. Tight regulation can work well; think of the excellent market for bread and patisserie in France. But standardising the sale of electricity often comes at the expense of incentives for retailers to discover customers’ needs, and may increase rather than reduce average prices.

Policymakers want both customer protection and incentives to innovation. But the desire to have one’s cake and eat it can lead to half-baked solutions that make matters worse.

The solution may be to master the complexity rather than trying to regulate it away. Many existing price comparison websites offer limited coverage of the market of competing offers, or look at only the energy consumption portion of a customer’s existing bill.

However advances in data science now make it cost effective to provide small customers with on-going analysis of their usage and their retailer’s charges in order to ensure that they are always on the best deal for them. Businesses using this approach overseas are well established, and the scope for further innovation is very large.

The ConversationOvercoming the complexity of the retail market will take away the wool that retailers have a powerful incentive to pull over their customers’ eyes.

Bruce Mountain, Director, Victoria Energy Policy Centre, Victoria University

This article was originally published on The Conversation. Read the original article.

A high price for policy failure: the ten-year story of spiralling electricity bills


David Blowers, Grattan Institute

Politicians are told never to waste a good crisis. Australia’s electricity sector is in crisis, or something close to it. The nation’s first-ever statewide blackout, in South Australia in September 2016, was followed by electricity shortages in several states last summer. More shortages are anticipated over coming summers.

But for most Australians, the most visible impact of this crisis has been their ever-increasing electricity bills. Electricity prices have become a political hot potato, and the blame game has been running unchecked for more than a year.


Read more: A year since the SA blackout, who’s winning the high-wattage power play?


Electricity retailers find fault with governments, and renewable energy advocates point the finger at the nasty old fossil-fuel generators. The right-wing commentariat blames renewables, while the federal government blames everyone but itself.

The truth is there is no silver bullet. No single factor or decision is responsible for the electricity prices we endure today. Rather, it is the confluence of many different policies and pressures at every step of the electricity supply chain.

According to the Australian Competition and Consumer Commission (ACCC), retail customers in the National Electricity Market (which excludes Western Australia and the Northern Territory) now pay 44% more in real terms for electricity than we did ten years ago.

Four components make up your electricity bill. Each has contributed to this increase.

How your rising power bills stack up.
ACCC, Author provided

The biggest culprit has been the network component – the cost of transporting the electricity. Next comes the retail component – the cost of billing and servicing the customer. Then there is the wholesale component – the cost of generating the electricity. And finally, the government policy component – the cost of environmental schemes that we pay for through our electricity bills.

Each component has a different tale, told differently in every state. But ultimately, this is a story about a decade of policy failure.

Network news

Network costs form the biggest part of your electricity bill. Australia is a big country, and moving electricity around it is expensive. As the graph above shows, network costs have contributed 40% of the total price increase over the past decade.

The reason we now pay so much for the network is simply that we have built an awful lot more stuff over the past decade. It’s also because it was agreed – through the industry regulator – that network businesses could build more network infrastructure and that we all have to pay for it, regardless of whether it is really needed.

Network businesses are heavily regulated. Their costs, charges and profits all have to be ticked off. This is supposed to keep costs down and prevent consumers being charged too much.

That’s the theory. But the fact is costs have spiralled. Between 2005 and 2016 the total value of the National Electricity Market (NEM) distribution network increased from A$42 billion to A$72 billion – a whopping 70%. During that time there has been little change in the number of customers using the network or the amount of electricity they used. The result: every unit of electricity we consume costs much more than it used to.

There are several reasons for this expensive overbuild. First, forecasts of electricity demand were wrong – badly wrong. Instead of ever-increasing consumption, the amount of electricity we used started to decline in 2009. A whole lot of network infrastructure was built to meet demand that never eventuated.

Second, governments in New South Wales and Queensland imposed strict reliability settings – designed to avoid blackouts – on the networks in the mid-2000s. To meet these reliability settings, the network businesses had to spend a lot more money reinforcing their networks than they otherwise would have.

Third, the way in which network businesses are regulated encourages extra spending on infrastructure. In an industry where you are guaranteed a 10% return on investment, virtually risk-free – as network businesses were between 2009 and 2014 – you are inclined to build, build, build.

The blame for this “gold-plating” of network assets is spread widely. Governments have been accused of panicking and setting reliability standards too high. The regulator has copped its share for allowing businesses too much capital spend and too high a return. Privatisation has also been criticised, which is slightly bizarre given that the worst offenders have been state-owned businesses.

Retail rollercoaster

The second biggest increase in your bill has been the amount we pay for the services provided to us by retailers. Across the NEM, 26% of the price increase over the past decade has been due to retail margins.

This increase in the retail component was never supposed to happen. To understand why, you must go back to the rationale for opening the retail sector to competition. Back in the 1990s, it was felt that retail energy was ripe for competition, which would deliver lower prices and more innovative products for consumers.

In theory, where competition exists, firms seek to reduce their costs to maximise their profits, in turn allowing them to reduce prices so as to grab as many customers as possible. The more they cut their costs, the more they can cut prices. Theoretically, costs are minimised and profits are squeezed. If competition works as it’s supposed to, the retail component should go down, not up.

But the exact opposite has happened in the electricity sector. In Victoria, the state that in 2009 became the first to completely deregulate its retail electricity market, the retail component of the bill has contributed to 36% of the price increase over the past decade.

On average, Victorians pay almost A$400 a year to retailers, more than any other mainland state in the NEM. This is consistent with the Grattan Institute’s Price Shock report, which showed that rising profits are causing pain for Victorian electricity consumers. Many customers remain on expensive deals, and do not switch to cheaper offers because the market is so complicated. These “sticky” customers have been cited as the cause of “excessive” profits to retailers.

But the new figures provided by the ACCC, which come directly from retailers, paint a different picture. The ACCC finds that the increase in margins in Victoria is wholly down to the increasing costs of retailers doing business.

There are reasons why competition might drive prices up, not down. Retailers now spend money on marketing to recruit and retain customers. And the existence of multiple retailers leads to duplications in costs that would not exist if a single retailer ran the market.

But these increases should be offset by retailers finding savings elsewhere, and this doesn’t seem to have happened. History may judge the introduction of competition to the retail electricity market as an expensive mistake.

Generational problems

So far, we have accounted for 65% of the bill increase of the past decade, and neither renewables nor coal have been mentioned once. Nor were they ever likely to be. The actual generation of electricity has only ever formed a minor portion of your electricity bill – the ACCC report shows that in 2015-16 the wholesale component constituted only 22% of the typical bill.

In the past year, however, wholesale prices have really increased. In 2015-16, households paid on average A$341 a year for the generation of electricity – far less than they were paying in 2006-07. But in the past year, that is estimated to have increased to A$530 a year.

Generators, particularly in Queensland, have been engaging in questionable behaviour, but it is the fundamental change in the supply and demand balance that means higher prices are here to stay for at least the next few years.

The truth is the cost of generating electricity has been exceptionally low in most parts of Australia for most of the past two decades. When the NEM was created in 1998, there was arguably more generation capacity in the system than was needed to meet demand. And in economics, more supply than demand equals low prices.

Over the years our politicians have been particularly good at ensuring overcapacity in the system. Most of the investment in generation in the NEM since its creation has been driven by either taxpayers’ money, or government schemes and incentives – not by market forces. The result has been oversupply.

Up until the late 2000s the market kept chugging along. Then two things happened. First, consumers started using less electricity. And second, the Renewable Energy Target (RET) was ramped up, pushing more supply into the market.

Demand down and supply up meant even more oversupply, and continued low prices. But the combination of low prices and low demand put pressure on the finances of existing fossil fuel generators. Old generators were being asked to produce less electricity than before, for lower prices. Smaller power stations began to be mothballed or retired.

Something had to give, and it did when both Alinta and Engie decided it was no longer financially viable to keep their power stations running. Far from being oversupplied, the market is now struggling to meet demand on hot days when people use the most electricity. The result is very high prices.

A tight demand and supply balance with less coal-fired generation has meant that Australia increasingly relies on gas-fired generation, at a time when gas prices are astronomical, leading to accusations of price-gouging.

Put simply, Australia has failed to build enough new generation over recent years to reliably replace ageing coal plants when they leave the market.

Is it renewable energy’s fault that coal-fired power stations have closed? Yes, but this is what needs to happen if we are to reduce greenhouse emissions. Is it renewables’ fault that replacement generation has not been built? No. It’s the government’s fault for failing to provide the right environment for new investment.

The right investment climate is crucial.
Marcella Cheng/The Conversation, CC BY

The current predicament could have been avoided if we had a credible and comprehensive emissions reduction policy to drive investment in the sector. Such a policy would give investors the confidence to build generation with the knowledge about what carbon liabilities they may face in the future. But the carbon price was repealed in 2014 and replaced with nothing.

We’re still waiting for an alternative policy. We’re still waiting for enough generation capacity to be built. And we’re still paying sky-high wholesale prices for electricity.

Green and gold

Finally, we have the direct cost of government green schemes over the past decade: the RET; the household solar panel subsidies; and the energy-efficiency incentives for homes and businesses.

They represent 16% of the price increase over the past 10 years – but they are still only 6% of the average bill.

If the aim of these schemes has been to reduce emissions, they have not done a very good job. Rooftop solar panel subsidies have been expensive and inequitable. The RET is more effective as an industry subsidy than an emissions reduction or energy transition policy. And energy efficiency schemes have produced questionable results.

It hasn’t been a total waste of money, but far deeper emissions cuts could have been delivered if those funds had been channelled into a coherent policy.


_Read more: One day we won’t need a Renewable Energy Target, because we’ll have good climate policy


The story of Australia’s high electricity prices is not really one of private companies ripping off consumers. Nor is it a tale about the privatisation of an essential service. Rather, this is the story of a decade of policy drift and political failure.

Governments have been repeatedly warned about the need to tackle these problems, but have done very little.

Instead they have focused their energy on squabbling over climate policy. State governments have introduced inefficient schemes, scrapped them, and then introduced them again, while the federal government has discarded policies without even trying them.

There is a huge void where our sensible energy policy should be. Network overbuild and ballooning retailer margins both dwarf the impact of the carbon price, yet if you listen only to our politicians you’d be forgiven for thinking the opposite.

And still it goes on. The underlying causes of Australia’s electricity price headaches – the regulation of networks, ineffective retail market competition, and our barely coping generators – need immediate attention. But still the petty politicking prevails.

The Coalition has rejected the Clean Energy Target recommended by Chief Scientist Alan Finkel. Labor will give no guarantee of support for the government’s alternative policy, the National Energy Guarantee. Some politicians doubt the very idea that we need to act on climate change. Some states have given up on Canberra and are going it alone.

The ConversationWe’ve been here before and we know how this story ends. Crisis wasted.

David Blowers, Energy Fellow, Grattan Institute

This article was originally published on The Conversation. Read the original article.

Power bills can fall – but the main attention must be on affordability: ACCC


Michelle Grattan, University of Canberra

The chairman of the Australian Competition and Consumer Commission (ACCC), Rod Sims, holds out the prospect of an absolute fall in electricity bills over coming years – but says this will require focusing centrally on affordability, not just reliability and sustainability.

In its Retail Electricity Pricing Inquiry preliminary report into the electricity market, released on Monday, the ACCC says residential electricity prices have increased by 63% on top of inflation in the last decade, with network costs being the major contributor.

Household bills rose by nearly 44%, from an average of A$,1177 in 2007-08 to $1,691 in 2016-17.

Household bills have risen less than electricity prices because usage has fallen, mainly due to self-supply by solar panels.

The report comes as cabinet is set to consider on Monday the government’s energy policy, which it hopes to take to the Coalition partyroom on Tuesday. Energy Minister Josh Frydenberg last week signalled the government had moved away from the Finkel inquiry’s recommendation for a clean energy target.

Facing the prospect of a shortage of power in the period ahead, the government is particularly focused on the need to increase dispatchable power.

The clean energy target, even in modified form, is also unpopular in Coalition ranks.

The ACCC report indicates that supporting renewable energy has been a relatively minor driver of the spiking of prices.

Sims – who flagged the ACCC findings when he addressed the National Press Club recently – says affordability should be the “dominant” objective in policy but in recent years it has come after several other objectives – including reliability, dividends and sustainability.

He said different approaches were needed to pursue each of the objectives of affordability, reliability and sustainability. As reliability and sustainability were pursued, it was important to do it in “the least-cost way and to let people know the costs”.

“What’s clear from our report is that price increases over the past ten years are putting Australian businesses and consumers under unacceptable pressure,” he said.

The ACCC found that on average across the national electricity market (which does not include Western Australia or the Northern Territory), a 2015-16 residential bill was $1,524, excluding GST. This was made up of network costs (48%), wholesale costs (22%), environmental costs (7%), retail and other costs (16%) and retail margins (8%).

Sims said the primacy of network costs in rising bills was not widely recognised.

Since July 2016, retail price rises were likely to be driven by higher wholesale prices.

“We estimate that higher wholesale costs during 2016-17 contributed to a $167 increase in bills. The wholesale (generation) market is highly concentrated and this is likely to be contributing to higher wholesale electricity prices.”

The ACCC estimates that in 2016-17 South Australia had the highest residential electricity prices, followed by Queensland, then Victoria and New South Wales. SA prices were roughly double those in Europe.

Sims said measures the government had already taken – notably telling companies to make customers aware of better deals, and its plan to scrap the process allowing companies to appeal against decisions of the Australian Energy Regulator – would help lower prices.

The ACCC is now looking in detail at further measures, ahead of making a final report. In the meantime, its preliminary report puts forward some suggestions. These include the states reviewing concessions policy to ensure consumers know their entitlements and concessions are well targeted to the needy, and a tougher stand against market breaches.

It says increased generation capacity (particularly from non-vertically integrated generators), preventing further consolidation of existing generation assets, and lowering gas prices could help reduce the pressure on bills.

The ACCC will also look at how to mitigate the effect of past investment decisions – but it notes that many are “locked in” and will continue to burden users for many years.

It will as well consider what more can be done to make it easier for consumers to switch suppliers.

The report says that “an increasing number of consumers are reporting difficulties meeting their electricity costs, and some consumers have been forced to minimise their spending on other essential services, including food and health services, to afford electricity bills.

“Businesses across all sectors have faced even higher increases over the past 12 months, following renegotiation of long term contracts. Many of these businesses cannot pass the increased costs on and are considering reducing staff or relocating overseas. Some businesses have even been forced to close.”

The ConversationThe ACCC’s final report will be released in June next year.

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

Egyptian Couple Shot by Muslim Extremists Undaunted in Ministry


Left for dead, Christians offer to drop charges if allowed to construct church building.

CAIRO, Egypt, June 9 (CDN) — Rasha Samir was sure her husband, Ephraim Shehata, was dead.

He was covered with blood, had two bullets inside him and was lying facedown in the dust of a dirt road. Samir was lying on top of him doing her best to shelter him from the onslaught of approaching gunmen.

With arms outstretched, the men surrounded Samir and Shehata and pumped off round after round at the couple. Seconds before, Samir could hear her husband mumbling Bible verses. But one bullet had pierced his neck, and now he wasn’t moving. In a blind terror, Samir tried desperately to stop her panicked breathing and convincingly lie still, hoping the gunmen would go away.

Finally, the gunfire stopped and one of the men spoke. “Let’s go. They’re dead.”

 

‘Break the Hearts’

On the afternoon of Feb. 27, lay pastor Shehata and his wife Samir were ambushed on a desolate street by a group of Islamic gunmen outside the village of Teleda in Upper Egypt.

The attack was meant to “break the hearts of the Christians” in the area, Samir said.

The attackers shot Shehata twice, once in the stomach through the back, and once in the neck. They shot Samir in the arm. Both survived the attack, but Shehata is still in the midst of a difficult recovery. The shooters have since been arrested and are in jail awaiting trial. A trial cannot begin until Shehata has recovered enough to attend court proceedings.

Despite this trauma, being left with debilitating injuries, more than 85,000 Egyptian pounds (US$14,855) in medical bills and possible long-term unemployment, Shehata is willing to drop all criminal charges against his attackers – and avoid what could be a very embarrassing trial for the nation – if the government will stop blocking Shehata from constructing a church building.

Before Shehata was shot, one of the attackers pushed him off his motorcycle and told him he was going to teach him a lesson about “running around” or being an active Christian.

Because of his ministry, the 34-year-old Shehata, a Coptic Orthodox Christian, was arguably the most visible Christian in his community. When he wasn’t working as a lab technician or attending legal classes at a local college, he was going door-to-door among Christians to encourage them in any way he could. He also ran a community center and medical clinic out of a converted two-bedroom apartment. His main goal, he said, was to “help Christians be strong in their faith.”

The center, open now for five years, provided much-needed basic medical services for surrounding residents for free, irrespective of their religion. The center also provided sewing training and a worksite for Christian women so they could gain extra income. Before the center was open in its present location, he ran similar services out of a relative’s apartment.

“We teach them something that can help them with the future, and when they get married they can have some way to work and it will help them get money for their families,” Shehata said.

Additionally, the center was used to teach hygiene and sanitation basics to area residents, a vital service to a community that uses well water that is often polluted or full of diseases. Along with these services, Shehata and his wife ran several development projects, repairing the roofs of shelters for poor people, installing plumbing, toilets and electrical systems. The center also distributed free food to the elderly and the infirm.

The center has been run by donations and nominal fees used to pay the rent for the apartment. Shehata has continued to run the programs as aggressively as he can, but he said that even before the shooting that the center was barely scraping by.

“We have no money to build or improve anything,” he said. “We have a safe, but no money to put in it.”

 

Tense Atmosphere

In the weeks before the shooting, Teleda and the surrounding villages were gripped with fear.

Christians in the community had been receiving death threats by phone after a Muslim man died during an attack on a Christian couple. On Feb. 2, a group of men in nearby Samalout tried to abduct a Coptic woman from a three-wheeled motorcycle her husband was driving. The husband, Zarif Elia, punched one of the attackers in the nose. The Muslim, Basem Abul-Eid, dropped dead on the spot.

Elia was arrested and charged with murder. An autopsy later revealed that the man died of a heart attack, but local Muslims were incensed.

Already in the spotlight for his ministry activities, Shehata heightened his profile when he warned government officials that Christians were going to be attacked, as they had been in Farshout and Nag Hammadi the previous month. He also gave an interview to a human rights activist that was posted on numerous Coptic websites. Because of this, government troops were deployed to the town, and extremists were unable to take revenge on local Christians – but only after almost the
entire Christian community was placed under house arrest.

“They chose me,” Shehata said, “Because they thought I was the one serving everybody, and I was the one who wrote the government telling them that Muslims were going to set fire to the Christian houses because of the death.”

Because of his busy schedule, Shehata and Samir, 27, were only able to spend Fridays and part of every Saturday together in a village in Samalut, where Shehata lives. Every Saturday after seeing Samir, Shehata would drive her back through Teleda to the village where she lives, close to her family. Samalut is a town approximately 105 kilometers (65 miles) south of Cairo.

On the afternoon of Feb. 27, Shehata and his wife were on a motorcycle on a desolate stretch of hard-packed dirt road. Other than a few scattered farming structures, there was nothing near the road but the Nile River on one side, and open fields dotted with palm trees on the other.

Shehata approached a torn-up section of the road and slowed down. A man walked up to the vehicle carrying a big wooden stick and forced him to stop. Shehata asked the man what was wrong, but he only pushed Shehata off the motorcycle and told him, “I’m going to stop you from running around,” Samir recounted.

Shehata asked the man to let Samir go. “Whatever you are going to do, do it to me,” he told the man.

The man didn’t listen and began hitting Shehata on the leg with the stick. As Shehata stumbled, Samir screamed for the man to leave them alone. The man lifted the stick again, clubbed Shehata once more on the leg and knocked him to the ground. As Shehata struggled to get up, the man took out a pistol, leveled it at Shehata’s back and squeezed the trigger.

Samir started praying and screaming Jesus’ name. The man turned toward her, raised the pistol once more, squeezed off another round, and shot Samir in the arm. Samir looked around and saw a few men running toward her, but her heart sank when she realized they had come not to help them but to join the assault.

Samir jumped on top of Shehata, rolled on to her back and started begging her attackers for their lives, but the men, now four in all, kept firing. Bullets were flying everywhere.

“I was scared. I thought I was going to die and that the angels were going to come and get our spirits,” Samir said. “I started praying, ‘Please God, forgive me, I’m a sinner and I am going to die.’”

Samir decided to play dead. She leaned back toward her husband, closed her eyes, went limp and tried to stop breathing. She said she felt that Shehata was dying underneath her.

“I could hear him saying some of the Scriptures, the one about the righteous thief [saying] ‘Remember me when you enter Paradise,’” she said. “Then a bullet went through his neck, and he stopped saying anything.”

Samir has no way of knowing how much time passed, but eventually the firing stopped. After she heard one of the shooters say, “Let’s go, they’re dead,” moments later she opened her eyes and the men were gone. When she lifted her head, she heard her husband moan.

 

Unlikely Survival

When Shehata arrived at the hospital, his doctors didn’t think he would survive. He had lost a tremendous amount of blood, a bullet had split his kidney in two, and the other bullet was lodged in his neck, leaving him partially paralyzed.

His heartbeat was so faint it couldn’t be detected. He was also riddled with a seemingly limitless supply of bullet fragments throughout his body.

Samir, though seriously injured, had fared much better than Shehata. The bullet went into her arm but otherwise left her uninjured. When she was shot, Samir was wearing a maternity coat. She wasn’t pregnant, but the couple had bought the coat in hopes she soon would be. Samir said she thinks the gunman who shot her thought he had hit her body, instead of just her arm.

The church leadership in Samalut was quickly informed about the shooting and summoned the best doctors they could, who quickly traveled to help Shehata and Samir. By chance, the hospital had a large supply of blood matching Shehata’s blood type because of an elective surgical procedure that was cancelled. The bullets were removed, and his kidney was repaired. The doctors however, were forced to leave many of the bullet fragments in Shehata’s body.

As difficult as it was to piece Shehata’s broken body back together, it paled in comparison with the recovery he had to suffer through. He endured multiple surgeries and was near death several times during his 70 days of hospitalization.

Early on, Shehata was struck with a massive infection. Also, because part of his internal tissue was cut off from its blood supply, it literally started to rot inside him. He began to swell and was in agony.

“I was screaming, and they brought the doctors,” Shehata said. The doctors decided to operate immediately.

When a surgeon removed one of the clamps holding Shehata’s abdomen together, the intense pressure popped off most of the other clamps. Surgeons removed some stomach tissue, part of his colon and more than a liter of infectious liquid.

Shehata could not eat normally and lost 35 kilograms (approximately 77 lbs.). He also couldn’t evacuate his bowels for at least 11 days, his wife said.

Despite the doctors’ best efforts, infections continued to rage through Shehata’s body, accompanied by alarming spikes in body temperature.

Eventually, doctors sent him to a hospital in Cairo, where he spent a week under treatment. A doctor there prescribed a different regimen of antibiotics that successfully fought the infection and returned Shehata’s body temperature to normal.

Shehata is recovering at home now, but he still has a host of medical problems. He has to take a massive amount of painkillers and is essentially bedridden. He cannot walk without assistance, is unable to move the fingers on his left hand and cannot eat solid food. In approximately two months he will undergo yet another surgery that, if all goes well, will allow him to use the bathroom normally.

“Even now I can’t walk properly, and I can’t lift my leg more than 10 or 20 centimeters. I need someone to help me just to pull up my underwear,” Shehata said. “I can move my arm, but I can’t move my fingers.”

Samir does not complain about her condition or that of Shehata. Instead, she sees the fact that she and her husband are even alive as a testament to God’s faithfulness. She said she thinks God allowed them to be struck with the bullets that injured them but pushed away the bullets that would have killed them.

“There were lots of bullets being shot, but they didn’t hit us, only three or four,” she said. “Where are the others?”

Even in the brutal process of recovery, Samir found cause for thanks. In the beginning, Shehata couldn’t move his left arm, but now he can. “Thank God and thank Jesus, it was His blessing to us,” Samir said. “We were kind of dead, now we are alive."

Still, Samir admits that sometimes her faith waivers. She is facing the possibility that Shehata might not work for some time, if ever. The couple owes the 85,000 Egyptian pounds (US$14,855) in medical bills, and continuing their ministry at the center and in the surrounding villages will be difficult at best.

“I am scared now, more so than during the shooting,” she said. “Ephraim said do not be afraid, it is supposed to make us stronger.”

So Samir prays for strength for her husband to heal and for patience. In the meantime, she said she looks forward to the day when the struggles from the shooting are over and she can look back and see how God used it to shape them.

“There is a great work the Lord is doing in our lives, we may not know what the reason is now, but maybe some day we will,” Samir said.

 

Government Opposition

For the past 10 years, Shehata has tried to erect a church building, or at a minimum a house, that he could use as a dedicated community center. But local Muslims and Egypt’s State Security Investigations (SSI) agency have blocked him every step of the way. He had, until the shooting happened, all but given up on constructing the church building.

On numerous occasions, Shehata has been stopped from holding group prayer meetings after people complained to the SSI. In one incident, a man paid by a land owner to watch a piece of property near the community center complained to the SSI that Shehata was holding prayer meetings at the facility. The SSI made Shehata sign papers stating he wouldn’t hold prayer meetings at the center.

At one time, Shehata had hoped to build a house to use as a community center on property that had been given to him for that purpose. Residents spread a rumor that he was actually erecting a church building, and police massed at the property to prevent him from doing any construction.

There is no church in the town where Shehata lives or in the surrounding villages. Shehata admits he would like to put up a church building on the donated property but says it is impossible, so he doesn’t even try.

In Egypt constructing or even repairing a church building can only be done after a complex government approval process. In effect, it makes it impossible to build a place for Christian worship. By comparison, the construction of mosques is encouraged through a system of subsidies.

“It is not allowed to build a church in Egypt,” Shehata said. “We can’t build a house. We can’t build a community center. And we can’t build a church.”

Because of this, Shehata and his wife organize transportation from surrounding villages to St. Mark’s Cathedral in Samalut for Friday services and sacraments. Because of the lack of transportation options, the congregants are forced to ride in a dozen open-top cattle cars.

“We take them not in proper cars or micro-buses, but trucks – the same trucks we use to move animals,” he said.

The trip is dangerous. A year ago a man fell out of one of the trucks onto the road and died. Shehata said bluntly that Christians are dying in Egypt because the government won’t allow them to construct church buildings.

“I feel upset about the man who died on the way going to church,” he said.

 

Church-for-Charges Swap

The shooters who attacked Shehata and Samir are in jail awaiting trial. The couple has identified each of the men, but even if they hadn’t, finding them for arrest was not a difficult task. The village the attackers came from erupted in celebration when they heard the pastor and his wife were dead.

Shehata now sees the shooting as a horrible incident that can be turned to the good of the believers he serves. He said he finds it particularly frustrating that numerous mosques have sprouted up in his community and surrounding areas during the 10 years he has been prevented from putting up a church building, or even a house. There are two mosques alone on the street of the man who died while being trucked to church services, he said.

Shehata has decided to forgo justice in pursuit of an opportunity to finally construct a church building. He has approached the SSI through church leaders, saying that if he is allowed to construct a church building, then he will take no part in the criminal prosecution of the shooters.

“I have told the security forces through the priests that I will drop the case if they can let us build the church on the piece of land,” he said.

The proposal isn’t without possibilities. His trial has the potential of being internationally embarrassing. It raises questions about fairness in Egyptian society during an upcoming presidential election that will be watched by the world.

Regardless of what happens, Shehata said all he wants is peace and for the rights of Christians to be respected. He said that in Egypt, Christians have less value than the “birds of the air” mentioned in the Bible. According to Luke 12:6, five sparrows sold for two pennies in ancient times.

“We are not to be killed like birds, slaughtered,” he said. “We are human.”

Report from Compass Direct News

Police raid offices of assisted suicide organization in Melbourne


Police raided the Melbourne offices of the assisted-suicide advocacy organization Exit International last Thursday, seizing documents related to the alleged assisted suicide of Exit International member Frank Ward. In response to this and to the raid of another Exit International member’s home, Exit International has told its 4,000 members to be wary not to attract police activity, reports James Tillman, LifeSiteNews.com.

"We haven’t had any incidents like this for a long time," said Dr. Philip Nitschke, head of Exit International.

The raid highlights the dubious legal status of Exit International’s activities. Because assisting or even encouraging suicide is illegal in Australia, Exit International bills its workshops, books, suicide equipment, and all its activities as merely providing people with knowledge and equipment to allow them to do what they want, not as actually assisting them in the act of suicide. According to Nitschke, such was the extent of Exit International’s contact with Ward.

"[Police] were suggesting we were involved in his death but we were not," Nitschke told Television New Zealand. "We would never be actively involved in something like that, helping him end his life, which would be committing a crime."

According to Alex Schadenberg, executive director of the Euthanasia Prevention Coalition, such protestations of innocence are dubious.

"I think that this raid is long-overdue," he told LifeSiteNews.com (LSN). "Nitschke has been skirting the law for many years."

Frank Ward killed himself last June by inhaling helium, which causes asphyxia. This method of suicide is among those promoted by Dr. Nitschke. Schadenberg described to LSN how at a Right-to-Die Conference he saw Nitschke demonstrate "how a device that he claimed to have invented would regulate the flow of gas to ensure that … the act would result in their death."

"Nitschke was not concerned that he was aiding suicide by knowingly selling a device to ensure the success of a suicide."

A widespread dissemination of information on how to kill oneself, however, is precisely what Nitschke desires. In an interview

with National Review he said that someone needs to provide the knowledge of how to kill oneself "to anyone who wants it, including the depressed, the elderly bereaved, [and] the troubled teen."

"If we are to remain consistent and we believe that the individual has the right to dispose of their life, we should not erect artificial barriers in the way of sub-groups who don’t meet our criteria," he said.

The second raid on Thursday was directly related to this desire of Nitschke. Police came to the home of an elderly Exit International member in Sydney to search for the euthanasia drug Nembutal and information concerning its acquisition. They left with a small quantity of the drug and the "Peaceful Pill Handbook," a book by Nitschke and a co-author on how to kill oneself that was banned by the Australian government.

Nembutal is used by veterinarians to euthanize animals, and is tightly controlled in most places around the world. Nitschke’s organization, however, has striven to make it available to as many people as possible.

"Last year Nitschke was encouraging people to order Nembutal by mail order from a source that he had discovered," Schadenberg said. "Once again, he wasn’t concerned that people with chronic depression would access this information to kill themselves." Members of Exit International also travel to Mexico to buy the drug, where it is easily obtained.

Nitschke explained that because of the raids Exit Internatonal had sent an alert to its 4,000 members “warning them about the fact that … people should be very careful if they’ve gone to great lengths to get these drugs so that they don’t find themselves subject of any form of police activity”

Schadenberg, however, thinks it high time that such activity began in earnest.

"It is simply about time that his offices were investigated, especially now that he has set up an office in Bellingham, Washington state, where he intends to launch his group into the United States,” he said.

“He intends to grow his group Exit International and he is doing this through his recent series of speaking engagements throughout the United States, Britain and Canada."

Report from the Christian Telegraph 

INDONESIA: CHRISTIANS CALL FOR REJECTION OF SHARIA-INSPIRED BILLS


Church leaders fear legislation will lead to religious intolerance; church, orphanage opposed.

JAKARTA, August 19 (Compass Direct News) – The Indonesian Council of Churches (PGI) has called for the rejection of two bills inspired by sharia (Islamic law).

The Halal Product Guarantee Bill and the Zakat Obligatory Alms Management Bill, both under consideration in the Indonesian parliament, cater to the needs of one religious group at the expense of others, violating Indonesia’s policy of pancasila or religious tolerance, said the Rev. Dr. A.A. Yewangoe, director of the PGI.

“National laws must be impartial and inclusive,” Yewangoe told Compass. “Since all laws are binding on all of the Indonesian people, they must be objective. Otherwise discrimination will result … The state has a duty to guard the rights of all its citizens, including freedom of religion.”

Dr. Lodewijk Gultom, head of PGI’s Law and Human Rights Department, pointed out that according to regulations on the formation of proposed laws, a bill cannot discriminate against any group of citizens. But the Halal product bill several times mentions sharia, as if Indonesia were an exclusively Muslim state, he said.

“If this bill is enforced, it will cause other religions to demand specific rights, and our sense of unity and common destiny will be lost,” Gultom said.

Gultom also said the bills were an attempt to resurrect the Jakarta Charter, a statement incorporated into Indonesia’s constitution in 1945 before it was quickly withdrawn. It declared that the newly-created state would be based on a belief in the one supreme God “with the obligation to live according to Islamic law for Muslims.”

Public opinion on the Jakarta Charter remains sharply divided, with some insisting that Islamic law is warranted because of the country’s Muslim majority, while others believe its implementation would disturb national unity.

Two members of Parliament, Constant Pongawa and Tiurlan Hutagaol, both from the Prosperous Peace Party, have requested the withdrawal of the Halal and Zakat bills to avoid creating conflict between Muslims and other religious groups.

“These bills are a step backward and will lead to the isolation of different religions,” agreed Ronald Naibaho, head of the North Sumatran chapter of the Indonesian Christian Youth Movement.

National church leaders have requested a meeting with President Susilo Bambang Yudhoyono to discuss the impact of these bills and a number of other discriminatory laws being applied at provincial levels across the country.

Church, Orphanage Closed

Muslim groups, meantime, recently moved to close more Christian institutions.

On July 21, following complaints from community groups, police forcibly dismantled a church in West Java on grounds that it did not have a building permit, while similar groups in East Java successfully lobbied for the closure of a Catholic orphanage claiming that it planned to “Christianize” local children.

Police in Bogor district, West Java, dismantled the temporary bamboo structure erected by the Huria Kristen Batak Protestan church in Parung Panjang on July 21. Church leaders insist that the church had long ago applied for a building permit that was not granted even though they had met all requirements, including obtaining permission from the Bogor Interfaith Harmony Forum.

“There are 234 buildings in Parung Panjang that lack building permits, including a mosque,” church elder Walman Nainggolan told Compass. “Why was our house of worship singled out?”

The church has filed a complaint with the National Human Rights Commission of Indonesia. Commissioner Johny Nelson Simanjuntak agreed to clarify the status of the church building permit with local officials and asked local police to permit peaceful worship as guaranteed by the constitution.

Separately, a group of Muslims lobbied for the closure of a Catholic orphanage for crippled children in Batu, in the Malang district of East Java, stating concern that the facility would become a covert vehicle for “Christianization.” In response to demonstrations in front of the mayor’s office in October 2008 and June 2009 and complaints from 10 different Muslim religious and community organizations, Batu Mayor Eddy Rumpoko on June 19 rescinded a building permit issued to the Catholic Bhakti Luhur Foundation and ordered that construction cease immediately.

The foundation operates 41 orphanages serving approximately 700 children with special needs.

“We are greatly saddened by this action,” the Rev. Laurentius Heru Susanto, a local vicar, told Compass. “The home was meant to serve the people. There was no other purpose.”

Report from Compass Direct News