Turnbull Government plan to address energy crisis predicts $400 price drop

//Turnbull Government plan to address energy crisis predicts $400 price drop

Turnbull Government plan to address energy crisis predicts $400 price drop

22 November, 2017

Anthony Galloway

Courtesy of the Courier Mail

 

Australians’ power bills would fall by up to $400 a year under the Turnbull Government’s plan to address the country’s energy crisis, according to new modelling.

The higher than expected savings from the National Energy Guarantee will be used by the government to try to convince the states to sign up to the plan.

Compared to what Australian households are forking out now for power, bills would drop by around $400 per year after the scheme is introduced in 2020.

And compared with a “business as usual” approach, Australians would be getting a $120 a year in savings.

The modelling by Frontier Economics, which will be released on Wednesday, was commissioned by the Energy Security Board.

Prime Minister Malcolm Turnbull said the savings were greater than originally estimated and declared the “evidence is in”.

“The National Energy Guarantee will generate significant savings for Australian families and businesses,” Mr Turnbull said.

“The benefits will flow through the entire economy. Businesses will be able to hire more staff, pay their employees more and pass on the savings to consumers through cheaper products.”

Energy Minister Josh Frydenberg said it was a “stark contrast” to Labor’s plan, which would “leave Australian families more than $310 worse off compared to the National Energy Guarantee”.

When announcing the plan last month, the government said bills could fall by up to $115 a year, compared to a “business as usual approach”, but Prime Minister Malcolm Turnbull wouldn’t guarantee the savings.

The announcement came after the government ditched a plan by Australia Chief Scientist Alan Finkel to have a Clean Energy Target, which would have likely included subsidies for renewable energy.

Under the NEG, a yearly “reliability” target in each state will mandate the amount of dispatchable power to be sourced by electricity retailers. This is to address concerns about the reliability of the national electricity grid as more intermittent renewable energy sources come on line.

At the same time, an “emissions guarantee” will cap the amount of emissions electricity companies can emit, to abide by the Paris Climate Agreement.

2017-11-22T13:54:03+00:00 November 22nd, 2017|