The Garlick Report

Does anyone remember the Garlick report that was released back in 1999 after Hydro, Aurora and Transend where created from the disaggregation of the HEC?

This paper was posted on the Treasury website but has since been removed.

I wish that Bryan Green would take the time to read the following extract from this paper.

Market power is generally considered to be a problem when an entity can use a position of market dominance to extract higher prices in sales to customers, and to impede entry of new competitors. A single HEC as generator would certainly be in a position of market dominance even with an assumption of a 300 MW Basslink in service. However it is the abuse of market power, not the possession of market power, that is the problem. In any free bidding spot market trading period, HEC could theoretically give up say 25% of market share to imports, thereby constraining the link, and then be free to set the pool price in Tasmania anywhere up to VoLL.

Garlick, Peter (1999), National Competition Policy Review of the Structure of the Hydro-Electric Corporation’s Generation & System Control Functions, Issues and Options, p. 51

HEC_Issues_PaperFinal.pdf