Mike speaks with Nick Cater, Executive Director of the Menzies Research Centre/Columnist with the Australian & Author of ‘The Lucky Culture’, about his latest Australian Newspaper opinion piece that examines Origin Energy capitalising on Victoria’s energy crisis.

The Prime Minister’s price-gouging tsar, Craig Emerson, may question why energy companies charged up to $2225.50 for a MWh of electricity during a crisis in Victoria.

Origin Energy’s CEO, Frank Calabria, revealed a substantial increase in underlying profits to $747m from $44m the previous year, capitalizing on the surge in prices during the crisis.

Despite being frowned upon in other contexts, profiteering in the National Electricity Market is allowed, driven by the fluctuating five-minute spot price that balances supply and demand 24/7.  This market mechanism, though criticized, is credited with preventing more extensive power outages during events like the collapse of half of Victoria’s electricity grid.

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