NSW Energy Minister Penny Sharpe says government watching El Nino alert “very carefully”

NSW’s hot summer could wreak havoc on the state’s power supply, prompting one worrying warning.

NSW could be up for a summer of electricity shortages and potential power bill increases with a likely El Nino weather event set to send temperatures soaring, the state energy minister has warned.

NSW Energy Minister Penny Sharpe said a El Nino summer was a concern the government was “watching very carefully”.

“El Nino is worrying all of us, whether it’s bushfires, or it’s increasing heat and load on the energy system,” she said on Thursday.

Energy Minister Penny Sharpe said the potential effect of El Nino on the power grid was ‘worrying’. Picture: NCA NewsWire/ Gaye Gerard

“There’s a lot of work being done by AEMO and the federal government, and the state and territory ministers to prepare for summer and to make sure that projects that need to get completed are being completed and how we manage the grid.

“It’s going to be challenging.”

Asked about whether households would be asked to reduce their energy consumption during peak periods of high heat, Ms Sharpe said it was an eventuality.

“I certainly hope that isn’t the case but we need to prepare for all eventualities and that’s what we’ll be doing,” she said.

On Thursday, a quarterly update from the Australian Energy Regulator (AER) confirmed the closure of the AGL-operated Liddell coal power station in April inflated wholesale prices, with average costs in NSW increasing by $148 per MWh since the previous quarter.

The report said this was due to higher demand for electricity, a seasonal decrease in solar generation, and a reduction in the state’s coal capacity.

However, the new 1100 megawatts of energy from new solar, wind and battery sources also offset some of the rising costs.

Although these rising costs won’t immediately impact consumers, it could affect future power bills if energy providers pass on these costs.

The closure of Liddell power station in Muswellbrook has increase wholesale power prices, the Australian Energy Regulator confirmed. Picture: Bianca De Marchi/ via NCA NewsWire

The impact of Liddell’s closure on the energy market has also prompted further questions around the extension of Origin’s Eraring Power Station which is slated to close in August 2025.

While Ms Sharpe couldn’t be moved to comment on a potential extension, she promised the government would “keep the lights on”.

“We simply don’t want coal-fired power open for one day longer than it needs to be. We’ll work with Eraring,” she said.

Although she acknowledged the closure of Liddell power station Ms Sharpe also urged households to check if they were eligible for rebates.

“We understand that this is a really difficult process. We’ve got a number of programs in place to try and support that,” she said.

“My main message is that if you’re eligible for rebates, make sure you apply for them, so you get support for your bills.”

Under the government’s $485m targeted Energy Relief Fund, pensioners, Health Care Card holders, and households on income support can receive a $500 rebate.

The government has also increased it’s crisis support payments to $500 for both gas and electricity bills, via its Energy Accounts Payment Assistance (EAPA) Scheme. The payments can be claimed twice per financial year.

Originally published as NSW Energy Minister Penny Sharpe says government watching El Nino alert “very carefully”