Institute of Public Affairs report blames coal station closures for predicted 90 per cent SA bill hike

A right wing think tank says coal power data – including from two SA stations – paints a costly picture for household energy bills.

Power bills for South Australian families will nearly double by the end of the decade as coal-fired power stations in the eastern states close to help the country hit its “net zero” targets, a new report predicts.

The Institute of Public Affairs (IPA), a right-wing think tank, expects the widespread shift to renewables will cause the average SA household annual power bill to jump from $1700 today to $3200 by 2030.

The report comes as some moderate Liberals consider crossing the floor to vote for Labor’s “symbolic” 2030 target of cutting emissions by 43 per cent in a revolt against Opposition Leader Peter Dutton’s climate stance.

The Liddell coal-fired power station in NSW is due to close next year.

It is understood senior moderates agree the Bill is merely “window dressing” and a target does not need legislating. But they are warning Mr Dutton voting against it would do more harm than good, as “teal” independents could use it as a campaigning tool at the next election to show Liberals are still ignorant to the effects of climate change.

“On the one hand it doesn’t matter but on the other, are you giving political opponents a sledgehammer to beat you with?” one moderate Liberal said.

The IPA’s “Net Zero Nightmare” report shows SA, boasting abundant renewables, will continue to have some of the most expensive power bills in the nation.

Only Tasmania will have higher bills with the IPA predicting families there will pay $4500 a year by the end of the decade.

IPA research director Daniel Wild said the current energy crisis gave Australians a “rare glimpse into the future” and was caused by “deliberate net zero policy choices made by low voltage politicians”.

Institute of Public Affairs research director Daniel Wild blames net-zero policies for the predicted rise in SA power bills …

… but state Energy Minister Tom Koutsantonis said that was a “laughable idea”.

The IPA’s report was based on price trends analysed from the closure of 10 coal power stations from 2010 to 2020, including SA’s Northern and Playford plants.

State Energy Minister Tom Koutsantonis said: “The idea that coal, which has had its cost nearly double in the past three months, is somehow cheaper than new renewables is laughable.”

Australian Energy Market Operator boss Daniel Westerman announced it would end the suspension of the spot market this week.

From 4am Tuesday, the market will be free to set wholesale electricity prices again as the energy crises eases. The suspension will be fully lifted on Friday.

“We’ve seen nearly 4000 megawatts of generation return to service since this time last week and that means the risk of any shortfall has reduced markedly,” Mr Westerman said.

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