Anthony Albanese, Chris Bowen issue warning to NSW residents amid energy crisis

Millions of Aussies are advised to only use what they need on Thursday night amid warnings the energy market crisis may drag on for ‘months’.

New South Wales residents have been told to switch off any unnecessary appliances on Thursday night, with the state’s energy grid set to be under “significant pressure”.

Amid the “embarrassing” energy crisis that could drag on throughout winter, the federal Energy Minister says while everything is being done to ensure there are no blackouts, it’s impossible to rule out load shedding.

It comes after the Australian Energy Market Operator made the unprecedented call on Wednesday to scrap the spot market, making it compulsory for generators to feed their supply into the grid.

Before yesterday, generators had chosen to withhold from the market due to a price cap, which would force them to operate at a loss, until they were forced to supply without the loss.

It was the latest domino in the crisis, resulting from a global gas shortage caused by Russia’s war in Ukraine, ageing domestic coal-fired power stations and a lag in the transition to renewable and alternative technologies.

Chris Bowen blamed the previous government for failing to invest in power stations and renewables, but said they were working closely with energy regulators and operators to find short, medium and long-term solutions.

“The NSW grid will be under significant pressure tonight, and everybody is working all day to avoid load shedding this evening,” Mr Bowen said.

“We are confident we can avoid blackouts. We will work hard to avoid load shedding. AEMO and (NSW Energy) Minister Keane have asked people – nothing essential should be turned off, nothing that is necessary for heating – but if you have a choice about when to run certain items, don’t run them from 6pm to 8pm.”

Prime Minister Anthony Albanese said it was impossible to fix a decade worth of inaction in 10 days, but the government was doing everything it could to support the energy regulator throughout the crisis.

“We have had a decade of energy ministers, multiple, who have delayed and denied any policy change that was required,” he said.

“We now have an energy minister who is actually doing his job.”

Earlier, Mr Albanese was unable to categorically rule out whether the energy crisis would drag on for months.

Anthony Albanese said the crisis was a ‘direct result’ of the former government’s failures. AAP Image/Brenda Strong

Instead, Mr Albanese said the industry, its regulators and state and federal governments were making decisions on a “day-by-day” basis.

Mr Albanese said while some international factors were out of anyone’s control, the domestic issues should be “a source of incredible embarrassment” for the previous government.

“This is a direct result of a failure to invest in the future, to have an energy policy of having 22 policy announcements but not landing one,” Mr Albanese told ABC Radio.

“This failure of policy has led to a market failure.”

Mr Albanese said the suspension of the pricing mechanism was supported by his government.

“AEMO are going to continue to make an assessment on a day-by-day basis to make sure that those who need energy, not just households but also industry, are able to continue to operate,” he said.

But when asked how long he expected the market to be suspended and the crisis to drag on, Mr Albanese could not rule out whether it would be “months”.

“It’s a day-by-day decision. They want the market to operate but they’ll make decisions on a day-by-day basis,” he said.

Energy Minister Chris Bowen says he and the government ‘absolutely support’ the unprecedented move of the Australian Energy Market Operator to scrap the market to keep the power on. Picture: AAP Image/Steven Saphore

Energy Minister Chris Bowen said he didn’t envisage Australia would be plagued by the crisis for all of winter, but also could not rule it out.

“This will be reviewed on a day-by-day basis, and I’ve been very clear that the regulator and operator … have my full support for any action (they) deem necessary,” Mr Bowen told ABC News.

“The government will back the operator and regulators 100 per cent, and this intervention will not be lifted one day earlier than it needs to be in his judgment.”

Mr Bowen said Australia’s energy market was a “complicated beast”, and that moving forward state and territory ministers would assess whether any laws needed to be changed.

He added it had proven how it important it was for the government to “get on with the job” of transitioning to renewables.

Mr Bowen and Mr Albanese signed the Labor government’s commitment to a tighter emissions reductions scheme in Canberra on Thursday.