Government’s new energy plan would slash $120 a year from power bills

VICTORIAN families would save about $120 on their yearly household power bill for a decade under the Turnbull Government’s energy plan, new modelling has revealed.

The National Energy Guarantee was first announced by Prime Minister Malcolm Turnbull last month. Picture: AAP

VICTORIAN families would save about $120 on their yearly household power bill for a decade under the Turnbull Government’s energy plan, new modelling has revealed.

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It would leave families about $400 better off every year between 2020-2030, compared to their bill this year as new, cheaper power is fed into the grid.

The advice, modelled by Frontier Economics, found the policy was expected to drop wholesale electricity prices 23 per cent lower than usual, and 30 per cent by 2030.

The National Energy Guarantee, first announced by Prime Minister Malcolm Turnbull last month, was originally expected to lower bills by $100 to $115 every year.

The electricity savings would be larger for high energy users and businesses, with small businesses like cafes expected to save hundreds of dollars a year. Larger energy users, such as a paper mill, could save up to $10 million.

Hazelwood power station. Picture: Getty Images

The modelling shows there would be more than 3600 megawatts of dispatchable generation under the plan — about two-and-a-half times the volume of Hazelwood — which will firm-up intermittent renewables.

Mr Turnbull seized on the modelling, which comes ahead of a energy ministers’ summit on Friday, to demand state governments endorse the policy. “The independent experts have spoken: our plan will cut power bills and ensure the lights stay on,” he said.

“The modelling is a wake-up call to Labor and the states. They should work with government to bring down prices, increase reliability and meet our international emission reduction commitments.”

Federal Energy Minister Josh Frydenberg. Picture: Kym Smith

The policy will force energy giants such as AGL, EnergyAustralia and Origin to meet reliability quotas to “keep the lights on” and low-emission guarantees to fulfil the Paris commitments by 2030.

It will also scrap renewable energy certificates after the current scheme expires in 2030.

State governments, many which have been reluctant to commit to the plan, will need to support the change to national electricity laws, while Parliament must approve emissions targets by 2020.

Federal Energy Minister Josh Frydenberg said the modelling made it clear the government’s approach would deliver significant savings, even beyond those initially forecast.

“Bill Shorten asked for modelling on the NEG ... now he has run out of excuses because he has modelling from Frontier Economics, a modeller which Labor has relied in the past,” Mr Frydenberg said.

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