The 50% renewable energy target by 2030 proposed by the opposition party has gotten quick response from the Abbot government as well as other major electricity companies in the country.
Matthew Warren, the CEO of the Energy Supply Association of Australia stated that there is obviously going to be an increase in electricity prices, should there be an increase in renewable electricity.
“Increasing the proportion of higher cost renewable energy into the market will increase power prices. No ifs, no buts.” Mr Warren said.
Greg Hunt, the Minister of Environment also indicated that the establishment of the 50% RET will raise the power bills in Australia.
“Labor has announced yet another plan that will hike power bills for Australian families, pensioners and businesses – and it will cost jobs”, said Mr Hunt
Greg Hunt further indicated that the carbon tax plan is far better than the Labour Party 50% RET by 2030. “What you see is, of course it’s going to have massive costs but it’s simply a minor issue by comparison with the carbon tax. So, this will be a major outcome in terms of the cost for business and the cost for households but the carbon tax, which is their written plan, their spoken plan and is still their plan, is going to have a far greater outcome”, Mr Hunt stated.
The Australian Competition and Consumer Commission realized that the cost of carbon has an influence on the prices of electricity, ranging from $28 to $50 per average quarterly electricity cost, based on the particular territory.
In comparison to the 50% RET by opposition party, ACCC noted that the labour policy will rather cost less than $6 per average quarterly electricity bill.
Furthermore it won’t be expensive for the energy-intensive manufacturing industries, since they are not allowed to pay for the cost of the scheme based on the recently government RET bill.
But the major power companies made some analysis on how the 50% RET by 2030 will affect the average Australia household in each territory compared to the recent Abbot Government policy. The yearly impact on electricity bill of 15% GST is also analysed as follows.
Predicted additional cost of 50% RET on household power bills compared to 15 per cent GST
|Territory||Average hh yearly power (MWh)||50% RET additional cost by 2030||50% RET cost per quarterly rate||Annual power bill price of 15% GST|
I order for the government to protect Australian Residents from paying high electricity bills, they must ensure that residences would keep on building on the consumption reduction they have already obtained. The Government could improve on the existing energy efficiency mechanisms, and enhance the policy of less energy performance standard for electrical appliances, as well as increase the extent of programs to support Australian residents in improving the deplorable energy efficiency of average households in the country.
The Conservation, July 22, 2015. How much would Labor’s 50% renewable energy policy cost Australian households:http://www.anu.edu.au/news/all-news/how-much-would-labors-50-renewable-energy-policy-cost-australian-households. Accessed July 27, 2015
AUTHOR: DOUGLAS YEBOAH