COAG meeting moves National Energy Guarantee to next stage

FEDERAL Energy Minister Josh Frydenberg has gained the support of his state counterparts for the national energy guarantee to move to the “next stage”.

• National Energy Guarantee: Labor states could stop South Australians from getting cheaper electricity
• What is the National Energy Guarantee?

FEDERAL Energy Minister Josh Frydenberg has gained the backing of his state counterparts for the National Energy Guarantee to move to the “next stage”.

At a Council of Australian Governments (COAG) meeting in Sydney on Friday morning, the group agreed for the plan - spruiked as lowering power prices and emissions - to be put to Coalition MPs and senators next week.

If it is then endorsed by the party room, the states will have a tele-conference on Tuesday where they will then need to give their approval to release of the “exposure draft of the National Electricity Law amendments” that would implement the National Energy Guarantee.

Energy Security Board chair Kerry Schott said it was a “great step forward” — after Labor-led states Victoria, Queensland and the ACT refused to support the plan, voicing concerns about the emissions targets proposed, until it was endorsed.

Victoria, following the meeting, has revealed it has “withheld support on the proposed National Energy Guarantee” until it supports lower power bills, emissions, and more renewable energy jobs for the state.
Federal Opposition Energy spokesman Mark Butler said the work of ministers and the Energy Security Board had been good but was critical of the NEG’s “lack of support for investment”.
“The surest way to bring down power bills is to expand renewable energy and that is our core complaint,” he said.

Ms Schott yesterday raised concerns about the hesitation from the states, saying the NEG needed to be approved swiftly, so it could address “tightness” in SA’s energy supply.

South Australia has given its unequivocal support for the guarantee with Premier Stephen Marshall this week stating the national approach to energy policy was the right way forward.

State Energy Minister Dan van Holst Pellekaan said: “If we get the NEG correct, South Australia will benefit”.

NEG modelling has shown that energy prices should fall by an average of $550 next decade. About $150 of the reduction would be directly attributable to the NEG, but some critics have argued the modelling is unreliable.

Under the NEG — designed by the Federal Government’s Energy Security Board — electricity retailers and major users would have to meet a reliability guarantee by sourcing a minimum proportion of their supply from “dispatchable sources”, which can be switched on at a moment’s notice to meet demand.

Dispatchable sources could include gas, coal, pumped hydro and batteries.

Retailers would also have to comply with a carbon emissions cap.

The Government wants the cap to be consistent with its plan to reduce greenhouse gas emissions by 26 per cent of 2005 levels by 2030.

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