Josh Frydenberg says Bill Shorten energy policy is ‘irresponsible madness’

The minister says Mr Shorten’s failure to distance himself from the debate surrounding a nationalised grid was straight ‘from the populist playbook of Jeremy Corbyn and Bernie Sanders’.

Josh Frydenberg in the control centre of Australian Energy Market Operator in Melbourne. Picture: Aaron Francis

Josh Frydenberg has labelled Bill Shorten’s refusal to rule out nationalising the energy grid as ­“illogical, irresponsible madness,” which reveals a “desperate need to appease his green-left flank and keep them at bay”.

In an opinion piece in today’s The Australian, the Environment and Energy Minister says Mr Shorten’s failure on Friday to distance himself from the debate surrounding a nationalised grid was straight “from the populist playbook of Jeremy Corbyn and Bernie Sanders” and would cost Australian households an extra $30,000 a year.

While the Opposition Leader said nationalising the grid was “unlikely to happen,” Mr Frydenberg says his failure to “unequivocally rule it out,” could “destroy” Australia’s reputation as a global investment destination.

Mr Frydenberg writes that supposed benefits of a nationalised energy grid have already been discredited.

He cites the Productivity Commission, which found that privately owned electricity assets are “better at efficiently meeting the long-term interests of their customers”.

Australian Energy Regulator figures also revealed it would cost $50 billion to nationalise the networks and interconnectors, which would put taxpayers “on the hook” for acquisition costs and future capital expenditure.

Referring to the joint press conference Mr Shorten held with ACTU president and Labor candidate for the Melbourne seat of Batman Ged Kearney, Mr Frydenberg writes: “Are Shorten and Kearney serious? Are they really prepared to ask every Australian household to stump up nearly $30,000 extra, inevitably through higher taxes, to achieve an ineffective socialist ideal?”

Debate over nationalising the energy grid comes as Tasmanian Liberals announced yesterday they would reduce power prices by up to 10 per cent if re-elected in March by breaking ties with the National Electricity Market.

Tasmania’s energy pricing, which began operating in the NEMin 2006, is linked to Victoria’s wholesale prices and is affected by volatility in that state’s electricity market.

Tasmanian Premier Will Hodgman said that “de-linking from inflated mainland electricity prices” would make “our low-cost, reliable on-island generation work for Tasmanians”.

However, opposition energy spokesman Scott Bacon said the Liberals’ “vague announcement has understandably left energy stakeholders scratching their heads”. “The Liberals must provide Tasmanians with more detail over their plan to ‘exit’ the ­National Energy Market.”