Power failure: why Victorian households are not plugging into electricity competition

The Victorian electricity industry has been revolutionised over the last decade as a result of two distinct but related policies: privatisation and market liberalisation or, as it is more often referred to, National Competition Policy (NCP). While NCP does not require privatisation, many of its proponents, such as the various Commissions of Audit1 established by governments over this period, have advocated it. The Kennett Liberal/National government (1992-99) pursued both policies, disaggregating and fully privatising the former State Electricity Commission of Victoria (SECV) and taking the lead in introducing competition into the industry.