Productivity in Electricity, Gas and Water: Measurement and Interpretation

While the ABS has been publishing estimates of MFP for the market sector for over twenty five years, it has only been publishing MFP estimates at the industry level since 2007, and still refers to the latter as experimental.3 Nevertheless, the industry MFP estimates published by the ABS are a key component of the aggregate productivity story in Australia, and this is likely to remain the case in t. [...] While valuable input was received and the feedback regarding the productivity estimates was generally favourable, they do not have the imprimatur of the ABS and the authors take sole responsibility for the quality and accuracy of the final results. [...] 4 For example, both MFP series shown in figure 3.2 use the same output variable (ABS gross value added in EGW) and the same labour input variable (total hours worked in the case of the ABS labour inputs, and the sum of subdivision hours worked in the case of the PC estimates). [...] The intention of the reforms was to increase the efficiency and competitiveness of Australia’s overall electricity sector.3 In regard to the individual sub-groups within Electricity supply, the reforms have had the following impacts: 1. [...] In 2000-01 Queensland was physically connected to the network, while an undersea link connected Tasmania in 2006.6 The NEM is one of the largest electricity networks in the world (in terms of distance covered), and the wholesale market for electricity within the NEM is one of the most active in the world (AER 2009 and 2010).