Electricity privatisation has failed to result in cheaper power for consumers and has not improved the sector’s efficiency, a report by the Australia Institute has found.

Since Victoria privatised power in the 1990s, electricity prices have outpaced the rate of inflation, rising by 170 per cent compared with an increase of 60 per cent in the consumer price index according to a study by the Australian Institute.

A productivity slump in the electricity sector has contributed to price hikes, the author of the study, David Richardson, said.

“Since June 1995, productivity in electricity, gas and water declined by 24.9 per cent. All other Australian industries saw an increase of 33.6 per cent,” he said. “The number of managers in the electricity sector has increased by a staggering 217 per cent since 1997.

‘‘Yet, at the same time there was a much smaller increase in front line staff, with the number of technicians and trades workers increasing by just 28 per cent.”