August 27, 2021 Read More →

Australian fossil fuel subsidies likely to raise electricity bills

Renew Economy: 

Angus Taylor’s ‘capacity market’ plan for households to pay to keep old coal plants running until they fall apart and are required to close, even if they’re grossly inefficient, will increase consumers’ electricity bills, not lower them.

IEEFA has calculated that households are likely to see increases in their electricity bills of between $182 to $430 a year to keep the ageing coal plants running, more than double the carbon price.

What’s striking, apart from the call to subsidize coal, is that the proposal to increase consumers’ electricity bills contrasts with the government’s ongoing efforts for years to get prices down in the electricity market.

The government has long worried that electricity prices are too high, and has gone through enormous contortions at the generation end to change that.

Remember Snowy 2.0 “had” to be urgently built by 2021 to ensure supply and lower prices, but now it is optimistically targeting an opening of 2027 and the need to ensure supply has faded into the background.

The narrative has been similar with the government-proposed Kurri Kurri diesel and gas power plant: if we don’t build this plant, prices will go up 30% according to the Prime Minister.

[Owen Evans] 

More:  Government cannot lower electricity bills by subsidising old and high cost power plants

Posted in: IEEFA In the News

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