Electricity prices have been a very touchy subject during the lead-up to past federal elections – and this one is turning out to be no different.
In December last year, Anthony Albanese unveiled Labor’s Powering Australia plan, part of which involves shared solar “banks” and community batteries. Shadow Minister for Climate Change and Energy Chris Bowen has already been busy pledging batteries to various communities.
But the most important and costly element of the plan is “Rewiring The Nation” – an electricity grid infrastructure upgrade blitz addressing transmission issues to allow for more renewables and drive down power prices.
Labor said its Powering Australia Plan will spur $76 billion of investment, create more than 600,000 new jobs and slash power bills for businesses and households; the latter by $275 annually by 2025 and $378 a year by 2030.
Taylor – Electricity Prices Jump Under Labor
Minister for Industry, Energy and Emissions Reduction Angus Taylor was on the airwaves yesterday morning saying this isn’t so. When asked by 2GB’s Ben Fordham what government modelling of Labor’s plan shows, Minister Taylor said:
“It shows prices across the East Coast, the National Electricity Market, would go up by $560 a year within a decade.”
That modelling is yet to be seen and there are questions as to its nature – or even its existence.
Albanese – Proposals Stack Up
Commenting on Minister Taylor’s claim, Anthony Albanese stated during a doorstop interview at the premises of electric vehicle DC fast charger manufacturer Tritium:
“We did the hard work in the lead-up to the announcement of our policy on the first Friday in December last year … We did the modelling through RepuTex, Australia’s leading energy economists. Our proposals stack up.”
Shadow Treasurer Jim Chalmers really went to town on Minister Taylor.
“Now, Angus Taylor has been forced into another absolutely humiliating admission today that the numbers he cooked up and put in the papers are complete and utter rubbish,” he said. “Angus Taylor has added fuel to the bin fire of lies that this Government tells about renewable energy. These are dodgy numbers from a dodgy Minister in a dodgy Government.”
.. and he didn’t stop there.
Separately, Chris Bowen quipped:
“Prawns in the sun last longer than this scare campaign.”
But regardless of which party emerges victorious after Australians go to the polls on May 21, electricity prices look set to rise for many Australians this year and possibly over the next couple of financial years. But on the flip side, so should solar feed-in tariffs. This is due to increases in wholesale electricity costs that were already occurring before Russia’s invasion of Ukraine, the effects of which are still yet to be fully felt in relation to gas.
If environmental policies and how they relate to energy are important to you in this election, stay tuned for an in-depth article from SQ’s Ronald next week looking at how the major parties stack up. It won’t just be informative, but probably the most entertaining comparison you’ll read this election. While very serious and complex issues, a bit of levity never goes astray.
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I see Chalmers claiming Taylor admitted his figures were rubbish, but is that actually true?
I can’t see any articles claiming such, I can however see stories backing up the claim. Morrison has stated energy bills will spike $560 a year, while Taylor states the rise will be supply costs due to ‘poles and wires charges’. At present these comprise on average 46% of household bills, but they’re based on the value of the network. Gold plate the network, and you gold plate the costs.
Experts are also skeptical of Labor’s claims. According to Matt Harris of Frontier Economics, Labor’s claims overstate savings by assuming a 26% fall in retail prices, yet wholesale prices comprise only a third of a power bill and any savings would be likewise.
While FiTs have crashed – dropping over 60% in some cases, neither supply charges nor usage charges have budged much. I know SQ argue savings on self consumption should be seen as the big saver, but that’s only valid if electricity prices are high, and you generate just enough to cover all your needs. The more you rely on exports to repay your system i.e. large systems, the more FiTs matter. And should power prices ever crash to near zero, well why bother with solar when the investment can’t ever repay itself? Of course if supply charges becomes the greater component in power bills, well then folk are likely to start looking at cord cutting.
George Kaplan,
“I see Chalmers claiming Taylor admitted his figures were rubbish, but is that actually true?
I can’t see any articles claiming such…”
George, perhaps you aren’t trying?
https://reneweconomy.com.au/another-lie-it-is-time-to-call-out-coalitions-climate-modelling-con/
“… I can however see stories backing up the claim.”
Would these articles perhaps be in Murdoch publications and on Sky News?
“Morrison has stated energy bills will spike $560 a year, while Taylor states the rise will be supply costs due to ‘poles and wires charges’.”
I don’t believe them.
I’d suggest a vote for politicians and political parties encouraging/facilitating more fossil fuels is a vote for civilisation collapse.
https://reneweconomy.com.au/coalition-spending-on-fossil-fuel-subsidies-tops-1-3-billion-in-first-week-of-campaign/
See Table 1: Consequences of Global Warming at Different Levels in an Expert Report by former Australian Chief Scientist (Nov 2008 to Mar 2011), Dr Penny Sackett at: https://www.ipcn.nsw.gov.au/resources/pac/media/files/pac/projects/2021/12/narrabri-underground-mine-stage-3-extension-project-ssd-10269/public-submissions/submissions-on-behalf-of-lock-the-gate-alliance/220225-penny-sackett_redacted.pdf
Geoff, the Renew article makes no such claim either. It casts doubt on Taylor’s claim, but that is all.
Er … not really. Most of the articles (Guardian, SMH etc) report on Labor’s attack on Taylor’s claim regarding Labor’s claim, or veer into completely irrelevant territory e.g. property prices – no clue why those are being returned in the results! There is a Herald Sun piece about it – paywalled, but the one I saw was a Daily Mail piece. Oh other options have The Australian – paywalled, and 2GB – audio rather than text, plus something about some criminal (in America?) pleading guilty to something or other. So while the relevant returns do break down along the Left v Right divide, it’s not a Murdoch Publications or Sky News versus the rest thing, nor was my source the Left hated ‘Murdoch Empire’.
What you do or do not believe is irrelevant. If capital costs are what drive supply charges then Labor investing billions in ‘poles and wires’ will of course drive supply charges up unless Labor caps said charges. Remember though that charges are set by retailers in deregulated areas or states, and by the state government in regulated areas or states. Hmm random thought – does the Commonwealth even have constitutional authority to set (cap) electricity supply rates?
Frankly I’m more concerned about a theoretical $560 spike in supply charges than I am about a theoretical collapse of civilisation. Plenty of families already struggle, or are completely unable, to provide a roof for their heads or food for their table. I am thankful that I don’t have this problem myself, but can I morally preference a candidate proposing such a thing ahead of alternatives?
Note I don’t have a clue which candidates or parties are standing in my electorate, only recently stumbled over the name of the individual supposedly representing it, and will cheerfully preference any remotely better candidates – especially if they actually live in my area, assuming such exist.
George, my daily usage charge is approx. $1.00 which equates to $360.00 p.a.
That is what I pay now and will pay later. Most of my power is from p.v. system therefore my bills will not markedly change.
Maybe you should keep your comments onto “The Conversation” pages as you usually do and just keep trying to confuse the non technical readers there. Most of the readers here do know fact from fiction as regards power generation and distribution.
George Kaplan,
“Frankly I’m more concerned about a theoretical $560 spike in supply charges than I am about a theoretical collapse of civilisation.”
There’s nothing theoretical about the climate crisis. Climate change has arrived and it’s going to get worse, and how much worse depends on the decisions that we make this decade especially, this year and today.
“Note I don’t have a clue which candidates or parties are standing in my electorate…”
Close of nominations for both the House of Representatives and Senate candidates occurs at exactly midday today (Apr 21) for the 2022 Federal Election.
24 hours after the close of nominations (midday), all divisional returning officers and state electoral officers declare nominations and conduct a ballot draw for positions on the relevant ballot paper.
https://www.aec.gov.au/election/
So by tomorrow evening, if we bother to look, we can probably see everyone who is standing for election and the order determined on the ballot papers for the respective electorates.
Those people (other than it seems to me people like George) who think the climate emergency is a critical issue may find this voting guide useful at: https://voteclimateone.org.au/federal-electorates/
Thankyou for the vote climate website, I have been looking for something like this.
Dont take it at face value though. The Animal Justice Party has a green light on climate, but they also want to take away your choice to eat meat.
Even a vote for the greens comes with all the woke baggage.
Through this site i just discovered the Sustainable Australia Party. It seems to suit my views.
The Australian Electoral Commission formally declared 1,624 candidate nominations yesterday (Apr 22) for the 2022 Australian Federal Election.
House of Representatives candidates: 1,203
Senate candidates: 421
https://www.aec.gov.au/media/2022/04-22a.htm
Find out who your candidates are in your area and the order on the respective ballot papers at: https://www.aec.gov.au/election/candidates.htm
Where to vote: https://www.aec.gov.au/election/voting.htm#start