As news of more major power price hikes reverberated around the nation, the vultures Opposition were ready to feed pounce. That’s politics, but it’s the hypocrisy of it all that really stinks.
Electricity prices have, well, gone to shit for many Australians – and they will likely get shittier before they get less shit, and then finally back in more affordable territory1. But in the meantime, the situation is going to have the biggest effect on those least able to bear the extra cost, and it will find its way into just about everything.
The number of Australians wanting solar quotes here on SQ skyrocketed yesterday soon after the ABC published a report stating (bolding mine):
“Labor’s first budget, which it released last night, is tipping electricity prices to increase, on average, 20 per cent by Christmas and a further 30 per cent in the next financial year. Combined, that would amount to a 56 per cent increase in power prices over the next 18 months.”
Ouch!2
Among the needling leading up to and since the Federal Budget was delivered by Treasurer Jim Chalmers, seizing on that 56% figure Opposition leader Peter Dutton said:
“I don’t think there was any election promise about a 56% increase in electricity prices.”
Federal Opposition Treasury spokesman Angus Taylor, who was previously Minister for Industry, Energy and Emissions Reduction in the Morrison Government, said:
“Despite Labor’s pre-election promise to reduce your power prices by $275 a year, their own budget papers contradict this claim, and the Government has no plan to address rising prices.”
Well, yes they do. Whether that plan works out remains to be seen. But the $275 commitment may turn out to have been a silly move as there was already writing on the wall and plenty of instability to suggest that could be difficult to honour – and the lead-up painful.
Power Price Rise News Put Off Prior To Election
However, there was also some writing hidden delayed by the Morrison Government that turned out to be a booby trap for the incoming Albanese government.
Here’s what happened.
The Liberals’ plan going into the election, last updated on May 16, 20223, stated under “Affordable, Reliable Electricity”:
“We are now turning the corner on power prices. Household electricity prices in the National Electricity Market have fallen by 8%, and for businesses by 10-12% over the past two financial years. The ACCC says that electricity costs are now the lowest they have been in 8 years.”
… what it didn’t mention is things were about to start going to hell in a handbasket. We were certainly turning a corner, but into a dark alleyway in the seediest part of town.
Each year, the Australian Energy Regulator (AER) sets the Default Market Offer (DMO) for the following financial year in New South Wales, South Australia and South-East Queensland. The DMO basically sets the stage for other electricity offers in those regions.
The AER usually releases its final determination on May 1, but was given extra time this year by the then-Morrison Government. The 2022 Australian federal election was held on Saturday 21 May. The AER didn’t release its determination – which contained some nasty news about electricity price rises – until May 26. In my opinion, this was really grubby stuff.
If Scotty, Barnaby, Angus and co. were still at the helm, they would be faced with the same issues today. And what hasn’t helped this situation was the Morrison Government faffing about on energy policy, sucking up to fossil fuels (which are a major part of the electricity price problem) and holding back renewables.
Under Labor’s Powering Australia Plan, the party says it will cut power bills by $275 a year for households *by 2025*, compared to December 2021. Labor has quite a job ahead of it over the next couple of years or so. Even if it is achieved, that still doesn’t get it off the hook for what’s happening now.
But with regard to the Opposition’s continued baiting on this and while a new government can only blame an old government for current woes for so long, as another Prime Minister said:
Footnotes
- Thanks to renewables, energy storage and related transmission infrastructure upgrades. ↩
- WA Premier Mark McGowan has said it will be a different story in Western Australia, due to WA’s reservation policy on gas and the fact its electricity assets aren’t privatised. ↩
- According to the source code of that page. ↩
About Michael Bloch
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Can I politely suggest you leave political comments off your site.
No, don’t. It’s politics that have delivered us to this unenviable position. Politicians who lie to further their own failed beliefs deserve everything coming to them. Sometimes the facts are inconvenient, especially for the former government. As least now we are on the right future track, but unfortunately burdened with a lot of cost pain along the way, thanks to years of policy inaction.
Hi Bob,
Whether we like it or not, ‘politics’ and the differing energy policies of various political representatives is becoming an increasingly important factor in the every-day decision making processes followed by individuals and businesses through-out Australia.
There is a basic commonsense principle that those who fail to learn from their mistakes will inevitably repeat them regardless of whatever actual realities may surround them at any point of time.
All humans are somewhat prone to a degree of temporary self-delusion at times, as it can take time for us to evaluate the nature of the real world changes around them and how to respond to whatever the personal impacts of those might be.
The ‘jilted’ lover who never ever accepts the fact that a particular individual they claim to be deeply in love with doesn’t want to continue the relationship is a classic example. Inevitably, such self-inflicted self-delusion leads to disastrous consequences affecting large numbers of people.
Our previous political leaders initially chose to interfere to a very large degree in the whole process of determining the future changes needed to what is perhaps the most vital element of our entire society – it’s energy supply.
They also ignored the wishes of a significant majority of the population for a speedy transition to a ‘renewable’ based energy supply. Long-standing relationships with nearby neighbours were also fractured etc etc.
I personally found Michael’s comments quite helpful in assessing the degree of self-delusion and willingness to instead acknowledge reality that still seems to exist in some political segments.
We will get what we choose to vote for. One of many segments of that choice includes a vote for ‘reality’ vs ‘unreality’
Why do you have to use vulgar language to (try to) express your opinion. I turned off as soon as I read that.
If you can’t express your opinion without the use of vulgarity then it is not for me and shows you just wish to appeal to the bogans!
I did not turn off at the vulgar language but was disappointed to see its use. Please refrain from vulgarity in future script.
Thanks