By Mike Foley
Energy Minister Chris Bowen has slammed what he says is a “deliberate lie” from Opposition Leader Peter Dutton that power prices have risen $1000 on Labor’s watch, as the Albanese government prepares for a critical battle over hip-pocket policies before the election.
Dutton has amped up his attack in recent weeks on the government’s 2022 election commitment to cut annual power bills by $275.
Energy Minister Chris Bowen has hit out at what he says are Peter Dutton’s “lies” about power price spikes.Credit: James Brickwood.
“Since then [the May 2022 election], power prices have gone up by $1000,” Dutton said in a speech last week to the Victorian Liberal Party state council. He has made this claim repeatedly in the past fortnight.
But this claim is false, compared to the annual price caps set by the regulator. Annual power prices have, in fact, increased by less than $450 since May 2022. The primary driver of higher electricity prices has been a global energy crunch, sparked by sanctions on Russian gas supply since Vladimir Putin’s invasion of Ukraine.
The Australian Energy Market Operator’s (AEMO) default offers – price caps on what retailers can charge customers who don’t take up special deals – rose most in NSW for customers of Essential Energy, a retailer that services regional NSW.
Prices set on July 1, 2022 at $2092 a year rose to $2513 for the 12 months from July 1, 2024 – a spike of $421.
The default offers in Victoria increased the most for Jemena customers in Melbourne’s western suburbs, with a $346 rise between July 2022 and July 2024.
Bowen told this masthead that Dutton did not have “a single data point to support his claim”.
“It’s a deliberate lie. When it comes to energy, I find that Peter Dutton just makes things up,” Bowen said.
The government’s policy is to work with states to underwrite private investment in wind, solar and battery projects, and reduce electricity prices by increasing the share of renewables in the grid to 82 per cent by 2030.
Opposition Leader Peter Dutton and his energy spokesman Ted O’Brien.Credit: Alex Ellinghausen
Renewables currently comprise 40 per cent of energy in the grid, up by 25 per cent since Labor formed government.
But opposition energy spokesman Ted O’Brien warned against the government’s “renewables only” policy.
“Prices will soar and the lights will go out,” he said last month.
O’Brien also spruiked the opposition’s commitment to open seven nuclear power plants, starting from at least 2037, to bolster the grid and lower power prices – with a detailed version of this plan promised before the election.
“Australians are suffering from the Albanese government’s out-of-control energy crisis with households paying up to $1000 more than Labor promised,” he said.
O’Brien justified Dutton’s $1000 claim by adding together the price increase under both the default offers released under Labor – compared to a 2022 baseline – and including the promised $275 saving, to arrive at a total shortfall.
While the government’s 2022 election commitment was released in December 2021 – months before the global energy crunch – it held firm on the claim as fuel prices spiked. Prime Minister Anthony Albanese repeated the $275 bill cut promise on May 18, 2022, three days before the election.
However, Bowen is now more circumspect about the $275 bill cut than Albanese was before the election.
“It’s modelling of the impact of our policies, done in 2020, for five years into the future. Of course, there have been challenges as we’ve come to office, like the ongoing energy crisis around the world, like the impact of the war in Ukraine,” Bowen said.
The government delivered energy bill relief to vulnerable households in the 2023 budget and doubled down in May, with a $300 rebate for every household.
The stalled renewable energy rollout is a major headache for the government heading into the next election, due by May, as speculation swirls that Albanese will pull the trigger even earlier.
An average delay of three years for key energy projects to build out the grid and link wind and solar farms to population centres has been driven largely by landholder opposition to new transmission lines.
This lack of growth in renewable energy and back-up power has prompted NSW and Victorian governments to cut deals with the owners of coal plants to ensure they don’t shut before enough renewables have been hooked up to fill the gap.
The federal opposition is adamant the Albanese government cannot meet its goal to boost renewables to comprise 82 per cent of the grid. AEMO head Daniel Westerman has said the target is still achievable, but says urgent improvements are needed. Other experts, such as those from the Grattan Institute, say the figure is out of reach.
But Bowen is cautiously optimistic and cited recent news of transmission line projects making progress with landholder agreements.
“There are encouraging signs that we’re on the right track, but a long, long way to go,” he said.
Dutton’s office was contacted for comment.
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