Chris Bowen’s free power plan just another meal for the rich
To access the scheme, households must agree to have a smart meter installed to allow electricity companies to charge different prices according to the time of day and demand. The research on smart meters for the less well off is clear. A report by Energy Consumers Australia this year found time-of-use tariffs are more likely to force lower-income people to cut their energy use when they really need it, such as heating or cooling in the evenings. It said higher costs during extreme weather events could disproportionately affect those who cannot afford increased electricity bills or lack alternative means of cooling or heating.
Many people who have signed up for a smart meter have experienced bill shock because they don’t understand how electricity is priced or that under some schemes once electricity has been used at a high peak period that usage is assumed across the entire bill. In addition, half of the charges on a standard bill relate to system charges for poles and wires, not power use.
Mr Bowen portrays the new scheme as a win for battlers who cannot afford a home solar set-up or those who live in a unit or apartment. “Our Solar Sharer Offer means more Australians can be part of our world-leading rooftop solar take up”, Mr Bowen said. “Free daytime power for families across Australia is proof that what’s good for the planet is good for your pocket.”
But the wealthy stand to gain more than most. Mr Bowen says if customers choose to take up the new offer they will be able to use appliances, run air conditioners or pool cleaners and charge their electric vehicles and home batteries during the day for free. All well and good for the wealthy with an EV, home battery and private swimming pool. But not much chop for the real unit dweller who may now be too scared to cool their home or cook an oven baked meal once the free period has clicked over to time of use charges they don’t understand.
Electricity users and voters should know by now there is no such thing as a free lunch – or, in Chris Bowen’s case, lunchtime free power. The Energy Minister’s new plan to force companies to provide three hours of free electricity during the middle of the day is no doubt seen by government as a political winner to deflect from the household pain of rising electricity charges. But it has been done without consultation with suppliers, and households wanting to take advantage of the scheme would be well advised to read the fine print. Like most things in the renewable energy space, this scheme will favour the rich and put low-income families at risk of greater financial peril.