Turnbull government criticises South Australia’s energy plan as a problem for other states

THE Turnbull government has condemned South Australia’s energy plan, and is now investigating if it could be a breach of national electricity market rules.

SOUTH Australia’s energy plan could increase electricity prices in other states, federal Environment and Energy Minister Josh Frydenberg says.

Mr Frydenberg has condemned the plan announced by South Australian Premier Jay Weatherill today as a “$550 million admission of failure” and “a warning sign to other states”.

The Turnbull government is now seeking legal advice on whether the decision today is a breach of national electricity market rules.

“Going it alone created South Australia’s problems and going it alone won’t fix South Australia’s problems,” Mr Frydenberg told reporters in Canberra.

“The measures announced today will only increase electricity prices for South Australians and has the potential to increase prices for Victorians, for people in NSW and in Tasmania,” he said.

SA Premier Jay Weatherill and Treasurer Tom Koutsantonis’ Energy Plan.

“We are seeking advice on whether the decision today by South Australia to go it alone is in breach of the national electricity market rules which has kept the system together for the last 20 years.”

The federal minister cited the South Australian Labor government’s “poor track record” on energy as evidence for why the plan would drive up prices.

He also said the plan went against the national energy market model which had been in place for two decades and warned any bid by South Australia to direct the Australian Energy Market Operator to direct power volumes could change the balance in other states.

“These 50 per cent renewable energy targets will get you into trouble,” he said.

Premier Jay Weatherill said, however, the strategy would put downward pressure on electricity prices and create about 600 new jobs.

Minister Frydenberg has warned the plan could impact other states. Picture: AAP

Battery storage for renewable energy, two new gas-fired power plants and tougher legislation to intervene in the national electricity market are at the heart of the new SA energy strategy.

“We’re taking charge of our energy future with a plan that will deliver South Australian power for South Australians,” the premier said.

“South Australians have been let down by a broken national energy market that puts profits before people.

“We’re going to put people first.” Reaction to the plan has been mixed with power generator Environmental and renewable energy groups decried the continued commitment to gas but welcomed the increased funding for renewable energy.

Mr Frydenberg and Prime Minister Malcolm Turnbull will meet with the heads of gas companies tomorrow to discuss a looming “energy crisis”.

Originally published as Turnbull government criticises South Australia’s energy plan as a problem for other states