Energy experts raise concerns about Bowen’s free power scheme
Energy experts have warned of “unintended consequences” from the Albanese Government’s plan for three hours of free power during the day,
Energy experts have warned about “unintended consequences” from Chris Bowen’s plan for three hours of free power, after the peak body representing electricity retailers panned the policy.
Yesterday, The Saturday Telegraph revealed the Australian Energy Council – which represents retailers – used a formal submission to Mr Bowen’s department to claim the Solar Sharer Offer will lead to higher bills for renters, the chronically sick, and people who don’t work at home.
The Grattan Institute’s Tony Wood said the scheme – which will require retailers to offer free electricity to households for at least three hours in the middle of the day when solar generation is at its peak – “sounds like an attractive and simple idea which turns out to be complicated”
“Some retailers were already trialling ways to shift demand to soak up excess solar power, and then, almost out of the blue, the government says ‘we’re going to make you do it’”, Mr Wood told The Sunday Telegraph.
“There could be many unintended consequences. The issues that the AEC has raised could be some of the unintended consequences.”
Another energy expert, MST Financial’s Saul Kavonic labelled the scheme “a headline seeking gimmick”.
“Australians who can’t afford smart appliances and heated pools and electric vehicles and home batteries will end up paying more so that well off Australians get a bit of free electricity during the day”, he said.
Announcing the policy earlier this month, Mr Bowen said Australians “deserve a fairer go” on their energy bills.
“People who are able to move electricity use into the zero cost power period will benefit directly, whether they have solar panels or not and whether they own or rent, and the more people take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be.”
Originally published as Energy experts raise concerns about Bowen’s free power scheme