Malcolm Turnbull’s new energy plan has been panned locally, after the prime minister’s National Energy Guarantee (NEG) announcement on Wednesday promised to “keep the lights on” by saving households “between $110 and $115 a year from 2020.”
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That figure has already been questioned by the head of the Energy Market Commission, John Pierce, who suggested that because the figure is an average over ten years, it could be as low as only $25 in 2020.
Tamworth councillor Mark Rodda has called the announcement “nothing but lip service”, suggesting that even if the savings do amount to $115 by 2020, the rate of which energy prices are rising would completely negate the savings anyway.
“Are they for real? – $115 a year by 2020, there is nothing significant about that that is going to help households, pensioners or businesses,” Mr Rodda said.
“It is another example of the government appearing to do something when they really aren’t.”
Mr Rodda also questioned the coalition’s dumping of renewable energy targets, while also appearing to question whether Labor’s policies would be any better.
“Ten years of incompetent arguments between the two parties on the merits of different power sources have got us to this point, there is nothing in this new policy that is going to help consumers and businesses,” he said.
Meanwhile former member for New England Tony Windsor used Facebook to criticise the NEG, suggesting that it is nothing but a vote grab heading towards the next election.
“NEG not a plan for the future, it's a short term political agenda and an attempt to recreate the carbon tax division in parliament, it's all about the next election!,” he said.
“It also has all the hallmarks of Howard's "cigarette paper" Murray Darling Basin Plan - strong on rhetoric weak on detail. Panic politics at its finest.”
The NEG effectively puts the onus back on to the power companies to guarantee reliable supply, as well as meeting emissions targets, with an undisclosed fine the penalty if they are unable to meet those demands.
This means that power companies will have to rely on “dispatchable” sources such as coal, gas, batteries and hydro schemes to avoid blackouts like were seen last year, specifically in South Australia, while it will also mean the scrapping of incentives and subsidies for renewables.
