Across most of Australia, energy bills have been rapidly increasing as a result of a global spike in coal and gas prices. The short-term causes are obvious: the Russian invasion of Ukraine and the subsequent sanctions on Russia have reduced the global supply of coal and gas. In addition, roughly a quarter of Australia’s inefficient and outdated coal-fired power stations have gone offline due to unplanned maintenance and outages. Along with peak demand for heating due to cold weather, the result is surging energy prices.

To alleviate the pressure, the Australian Energy Market Operator (AEMO) stepped in to impose price caps in Queensland, South Australia, New South Wales, and Victoria. The only problem is the big gas and coal companies to decided that they weren’t interested in taking a hit to their profits in order to supply domestic consumers. They withdrew supply from the market, threatening blackouts across Australia’s eastern states.

This move forced AEMO to suspend the National Electricity Market in its entirety, instead imposing a system where the market operator sets fixed prices and can demand the energy companies to provide supply. It’s clear-cut proof that privately owned energy production and distribution has failed — and it makes the case for public ownership obvious and pressing.