July 25, 2018 10:53:08
Households would save about $150 every year on their power bills under the Turnbull Government’s flagship energy policy, a new report has found.
- Research says National Energy Guarantee (NEG) would help cut prices in most states and territories
- Average household would save ‘around $550’, and of this, ‘nearly $150 per year is forecast additional savings’
- NEG would force electricity retailers to provide reliable supply while also containing carbon emissions
The research said the National Energy Guarantee (NEG) would help cut prices in most states and territories in the next decade.
Energy Ministers from across the country will decide the policy’s fate at a crucial meeting on August 10 — a gathering that could end more than a decade of bickering over energy and climate change.
The average household would “save around $550 a year on their retail bill over the 2020s relative to 2017-18,” the official report predicted.
“Of this, nearly $150 per year is forecast additional savings as a result of the guarantee.”
Prices would fall even without the NEG, the report found, because of renewable generation coming into the system over the next three years.
Wholesale electricity prices would halve between now and 2023-24 under the NEG before rising again.
The Liddell power station in New South Wales is slated to close in 2022-23.
Wholesale charges are just one component of household bills, along with transmission and retail costs.
The modelling has been prepared for the Energy Security Board, which reports to the Council of Australian Governments.
The National Energy Guarantee would force electricity retailers to provide reliable supply while also containing carbon emissions.
The report noted that retail prices had more than doubled over the past decade, increasing at a rate well above inflation.
Treasurer Scott Morrison said the NEG was the “only credible plan to reduce electricity prices in Australia”.
He said he was confident that as work continued with states and territories, they would “get behind this plan”.
But some Coalition backbenchers, including former PM Tony Abbott, have expressed concern about the NEG.
Mr Abbott has not ruled out crossing the floor in Parliament to vote against it.
Today Liberal backbencher Tony Pasin told Sky News he welcomed the latest research showing the NEG would put “downward pressure on energy prices for ordinary everyday Australians”.
Mr Pasin said his decision on whether to support the NEG would be based on whether he believed it would be “sufficient downward pressure on energy prices”.
Federal Labor has made its support for the NEG conditional on it having a mechanism to make the emissions reduction target more ambitious than the current level of 26 per cent.
The research released today showed that it was possible for the NEG to accommodate a higher emissions reduction target.
NSW Labor Senator Jenny McAllister told Sky News it was important to be able to lift the target.
“We think the targets are inadequate we actually think they will do harm to other parts of the economy,” she said.
“If you go light on the electricity sector it just means that the transport sector the agricultural sector has to do more of the heavy lifting we don’t think that is good for the economy.”