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“The National Energy Guarantee is dead” – What now for Australian electricity prices?

POSTED ON September 13, 2018 BY

Over the weekend, new Australian PM Scott Morrison announced that the National Energy Guarantee is officially dead.

The NEG created a perfect storm where a democratically-elected PM was sacked by his party, unhappy with the policy.

For an electricity market screaming out for a stable policy, this lack of clarity will not allow power prices to fall.

 

What was the NEG?

The NEG put in place two demands on electricity providers.

Firstly, supply electricity to the grid that is “reliable” and secondly, cut emissions according to the Paris Climate Agreement, by 2030.

“Reliable” electricity in a grid refers to power sources that can be turned on in the blink of an eye when demand peaks.

To reach targets, the NEG demanded 24-36% of Australia’s power come from renewable sources.

Find out more about how those savings occur and how the NEG was set to affect you.

 

What next for Australian electricity prices?

 

The Energy Security Board says the NEG could have saved Australian homes $150 a year between 2020-2030.

In light of the failure of the NEG, the ESB warns that wholesale power prices could increase after 2023.

Labor’s energy spokesman expects Australian households to pay almost $300 more a year on power, without the NEG.

The new government pulling the plug on the NEG meant that any electricity policy that lowers prices currently does not exist.

A climate of uncertainty is the last thing Australians need, as higher prices thrive in an atmosphere of chaos.

At a time when Australians seem to face abandonment by their own governments, it’s time to take matters into your own hands!

Want to get ahead of the curve and cut losses? Shop around for better electricity deals with Electricity Monster.

Call Electricity Monster on 1300 962 027 and find out how we can help you reach a sharper rate.

 

What are politicians planning now?

 

The man who helped come up the NEG, Josh Frydenburg, said the government would focus on the “reliability aspect”.

The federal government is looking at policies that will punish energy retailers that are breaking the rules.

Additionally, the government is looking at a new investment policy will promote reliable power sources.

The opposition Labor party is unsure whether to come up with a higher pollution reduction target or an entirely new energy policy.

Meanwhile, state governments have to fight all alone to reduce emissions, as they are in the dark.

The federal government did say it will honour pledges under the Paris Climate Agreement.

The Paris Agreement requires that Australia reach emission levels in 2030 that are 26% lower than 2005 levels.

To reduce pollution, the government may clamp down on other sectors, costing jobs.

Because thousands of Australians are increasingly facing energy poverty, this situation is simply unacceptable.

At Electricity Monster, we see the failure in planning policies that help Australians as a dissapointment.

Don’t wait for Canberra, call Electricity Monster on 1300 962 027, and get on a sharper plan today!

 

* We do not compare all energy providers

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