Barnaby Joyce slams NSW’s power plan as a ‘tax’

Federal Nationals MPs have launched a crusade against the NSW government’s proposed ­energy reforms, with Barnaby Joyce saying they amount to a Coalition version of a carbon tax.

Nationals MP Barnaby Joyce. Picture: Sean Davey.

Federal Nationals MPs have launched a crusade against the NSW government’s proposed ­energy reforms, with Barnaby Joyce saying they amount to a Coalition version of a carbon tax.

The former deputy prime minister and sitting federal MP for the NSW electorate of New England said the use of a levy to underwrite new energy projects was an unfair impost on consumers.

He said the levy, which would help companies underwrite investment in transmission, as well as new generation and storage, would be passed onto consumers through their electricity bills.

“I never thought I would see the day where my own side of ­parliament comes up with a carbon tax,” Mr Joyce said.

“It just goes to show that your idea doesn’t have economic merit if it can’t stand on its own legs. We are supposed to be the economically sane side of politics.”

The federal Nationals MP for the NSW seat of Lyne, David Gillespie, said the Berejiklian government’s policy was a “fantasy”.

“Some of their forecasts, both the economics and the engineering involved, just doesn’t add up,” Mr Gillespie said.

In response, NSW Energy Minister Matt Kean lashed out at Mr Joyce for suggesting the policy was akin to a carbon tax.

“How could it be a carbon tax when it supports the build of gas?” Mr Kean said. “Poor old Barnaby should get across the detail before he makes unfounded, unsubstantiated statements.” He said consumers would only pay a levy for generation and storage “when prices are low”. And he claimed power bills under the plan would be on average $130 lower per year.

“If prices rise in the future then consumers claw back payments when they were made. This will leave consumers better off,” Mr Kean added.

Energy giant AGL said the state’s plan — which aims to attract $34bn in private investment spread through renewable energy zones — meant it would have to defer and review plans for a ­Newcastle gas plant and a giant battery at Liddell.

EnergyAustralia has also delayed a final investment decision on its planned $400m Tallawarra gas plant in NSW amid uncertainty over the threat of state and national government interventions in the energy sector.

The power giant had planned a decision before the end of the year but said it had now deferred that until the first quarter of 2021.

Federal Energy Minister Angus Taylor has called for Mr Kean to release the details of the modelling for the plan.

The policy, which is being debated in the NSW parliament and is backed by Labor, is designed to incentivise the replacement of all coal-fired power plants with lower emission energy by 2042.

Mr Kean said he would brief Mr Taylor on the scheme, which he said was compatible with the federal government’s policies.

“What Angus is focused on is dispatchable (projects) being built. This provides a pathway to get (them) built,” he said.