Investors scared off by "big stick" power plays in energy sector, Grattan Institute report warns

The Grattan Institute is warning that "big stick" intervention by Australian governments is discouraging investment in new energy infrastructure. 

Energy policy director Tony Wood tells ABC's Peter Ryan that despite good intentions, doing nothing might have been a better strategy with foreign investors now nervous about potential political meddling in a supposedly free market.

Read the Grattan Institute report here