Latest news with #Ben-David
West Australian
19 hours ago
- Business
- West Australian
No easy answers to gas network 'death spiral'
Australians are embracing electrification in the name of decarbonisation, healthier homes and cheaper bills but the shift has policymakers under pressure to insulate a shrinking pool of gas users from price shock. Ron Ben-David, a former regulator who holds a professorial fellowship with the Monash Business School, describes the flight from the gas network as a "death spiral". Like a runaway train, once some households start leaving the gas network, the cost of running and maintaining it increases for those who remain, prompting even more to make the switch. And so on, and so on. While a win for electrification and cutting emissions, the death spiral has consequences, not least for renters and others who might struggle to get off gas. Even middle-income households could be challenged to stump up the hefty sums needed to replace gas heaters, ovens and stoves as gas bills continue to rise. Left unchecked, Dr Ben-David said the problem could undermine community support for the net-zero transition. "If we lose consumer support, then we can kiss the transition away," he told AAP. The stranded gas asset issue has not gone unnoticed, with governments, regulators and industry all looking for solutions Consumer and welfare groups have also been active, with Energy Consumers Australia pushing for a rule change to force developers and new customers to pay the full cost of new connections up front to stop the problem becoming even bigger. Dr Ben-David believes there are no easy solutions to what is ultimately a political decision. The debate boils down to "who pays for what", with consumers, investors and taxpayers all in play. The matter is complicated by the unusual nature of gas distribution regulation. As natural monopolies, gas network companies are not allowed to set their prices. Prices must be approved by the Australian Energy Regulator under what is often described as a "regulatory compact" that ensures investor funds are returned to them during the life of the assets. Forcing investors to cop the risk asset of stranding, therefore, allegedly amounts to a broken compact, Dr Ben-David said, making network stranding more complicated than just writing off a dud investment. For gas network companies, "accelerated depreciation" is the answer. That effectively means asking the regulator to account for the shortened life spans of their assets so they can push up customer prices in the near term to hasten the recovery of their investments. Governments could also help absorb some of the shrinking customer base costs but state and federal budgets are already under strain and bailing out gas networks could be politically contentious. Dr Ben-David has put forward another option. Under his proposed model, electricity distribution networks would underwrite the shrinking gas network. There's more to his thinking, but using income generated by electricity distribution companies - and their customers - to underwrite declining gas networks is a key element. It's based on the rationale that electricity networks would continue to expand and have long life spans in a low-carbon economy. While he concedes it is controversial to be adding to electricity prices to pay off gas networks, he argues the other options are just as unappealing. He also put the call out for better ideas, and fast. "The best time to solve a problem is before the problem takes off," he said.
Perth Now
20 hours ago
- Business
- Perth Now
No easy answers to gas network 'death spiral'
Australians are embracing electrification in the name of decarbonisation, healthier homes and cheaper bills but the shift has policymakers under pressure to insulate a shrinking pool of gas users from price shock. Ron Ben-David, a former regulator who holds a professorial fellowship with the Monash Business School, describes the flight from the gas network as a "death spiral". Like a runaway train, once some households start leaving the gas network, the cost of running and maintaining it increases for those who remain, prompting even more to make the switch. And so on, and so on. While a win for electrification and cutting emissions, the death spiral has consequences, not least for renters and others who might struggle to get off gas. Even middle-income households could be challenged to stump up the hefty sums needed to replace gas heaters, ovens and stoves as gas bills continue to rise. Left unchecked, Dr Ben-David said the problem could undermine community support for the net-zero transition. "If we lose consumer support, then we can kiss the transition away," he told AAP. The stranded gas asset issue has not gone unnoticed, with governments, regulators and industry all looking for solutions Consumer and welfare groups have also been active, with Energy Consumers Australia pushing for a rule change to force developers and new customers to pay the full cost of new connections up front to stop the problem becoming even bigger. Dr Ben-David believes there are no easy solutions to what is ultimately a political decision. The debate boils down to "who pays for what", with consumers, investors and taxpayers all in play. The matter is complicated by the unusual nature of gas distribution regulation. As natural monopolies, gas network companies are not allowed to set their prices. Prices must be approved by the Australian Energy Regulator under what is often described as a "regulatory compact" that ensures investor funds are returned to them during the life of the assets. Forcing investors to cop the risk asset of stranding, therefore, allegedly amounts to a broken compact, Dr Ben-David said, making network stranding more complicated than just writing off a dud investment. For gas network companies, "accelerated depreciation" is the answer. That effectively means asking the regulator to account for the shortened life spans of their assets so they can push up customer prices in the near term to hasten the recovery of their investments. Governments could also help absorb some of the shrinking customer base costs but state and federal budgets are already under strain and bailing out gas networks could be politically contentious. Dr Ben-David has put forward another option. Under his proposed model, electricity distribution networks would underwrite the shrinking gas network. There's more to his thinking, but using income generated by electricity distribution companies - and their customers - to underwrite declining gas networks is a key element. It's based on the rationale that electricity networks would continue to expand and have long life spans in a low-carbon economy. While he concedes it is controversial to be adding to electricity prices to pay off gas networks, he argues the other options are just as unappealing. He also put the call out for better ideas, and fast. "The best time to solve a problem is before the problem takes off," he said.
Yahoo
23-03-2025
- Politics
- Yahoo
Intense debate erupts over controversial bill that would have big impact on rivers: 'We would be smart to wait'
Wildlife experts and constituents pleaded with Wyoming lawmakers to cease a bill introduced in the state that would end 72 years of protection for river otters, WyoFile reported. The bill passed the House with a 52-8 vote and passed the Senate with a 22-9 vote. Republican lawmakers in Wyoming's State Legislature have proposed House Bill 45, "Removing otters as protected animals," which would do exactly that. The bill, conceived by Andrew Byron, originated from the trouble fishers were having in polluted waters and locals who were "having trouble with otters." If the bill passes, it would remove otters from a list of "protected animals for purposes of hunting regulations." Northern river otters, the only species of otter in Wyoming, according to Cowboy State Daily, have been protected since 1953, prior to the Federal Endangered Species Act. "After they were protected in 1953, you started to see their population spread," said Wyoming Game and Fish director Angi Bruce. According to Bruce, having the bill pass would help authorities deal with "problem-causing otters." Reports of otters in fish-stocked waters or attacking tubers have caused some concern. "Having this tool, in my perspective, allows us to help gain support for more otters," said Bruce. However, wildlife experts and other lawmakers caution that the bill is moving too quickly. Merav Ben-David, a University of Wyoming professor, asked for lawmakers to leave river otters alone. Her plea stemmed from research on otters that were nearly wiped out during the fur-trading eras and slowly reintroducing themselves to their habitats. "In 2021, we had 25% of the otter activity at these latrines compared to what we had a decade ago," Ben-David told lawmakers. "River otters are slowly clawing their way back. Their existence is tenuous, depending on water flow, fish abundance and pollution." " We would be smart to wait until we get viable populations in other places, [like] along the Wind River," Ben-David continued. "I would encourage a change in their status when I start getting complaints from anglers in the Bighorn River or friends of mine who live in Glendale." Do you think America does a good job of protecting its natural beauty? Definitely Only in some areas No way I'm not sure Click your choice to see results and speak your mind. State Rep. Karlee Provenza deferred to Ben-David's expertise: "If the number one scientist that knows what is going on says, 'No,' then I would also urge you to vote no on this bill." The bill passed the committee with a vote of 8-2 before moving through the House and Senate and being signed by governor Mark Gordon. According to the International Otter Survival Fund, northern river otters are listed as "least concern," meaning they are not at threat of extinction. However, this status is supported by the protections otters have had in Wyoming for 72 years. Bill 45 could place river otters in danger of becoming endangered. Removing the protected status allows for the moving and killing of "fish-eating nuisance otters," according to WyoFile. "The first step would be to try to relocate them to somewhere else," Game and Fish chief warden Dan Smith said. "In the end, if nothing works, that still would give us the tool to lethally remove them, but that would be a last step," said Angi Bruce. Food supplies for otters are dwindling due to rising water temperatures. This forces otters to move to different areas for food and to get creative in their search. Researchers even found otters eating foods 35% harder than their teeth are used to and using glass bottles to help break down their food. According to the National Environmental Education Foundation, river otters, as predators, are ecologically important as they help control populations of kelp and other species. They even help control the spread of invasive species. But they are also susceptible to "environmental contaminants," such as mercury and polychlorinated biphenyls. In England, scientists found high levels of toxic chemicals in dead otters due to waste. With less protection, otters can be more susceptible to these environmental hazards and have a harder time finding their food supply. Even though the bill was passed, there still are protections in place. According to Wyoming Public Media, the bill doesn't allow an open season on otters. "There are fears out there that this is an all-out attack, this is a free-for-all," said Rep. Byron. "It's really, really not the case." First steps would be to use electric fences and other mitigation practices before resorting to lethal methods. "I personally believe that when we are able to go in and address conflict situations with landowners, it helps build support for that species as they become more popular across the state," Angi Bruce said. According to River Otter Ecology, there are plenty of ways you can help protect otters on a personal level. These include picking up trash, not using chemical fertilizers, and supporting conservation groups and political candidates. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
