‘The poorest are trapped’: Bowen under fire for ‘out of touch’ solution to power bill crisis

Energy Minister Chris Bowen has been slammed by frustrated Australians for his “out of touch” solution to reducing power bills.

Struggling renters and families unable to keep up with the rising cost of living have slammed Energy Minister Chris Bowen for his “out of touch” response to reducing electricity bills.

Australians are bracing for rising energy prices this month after power wholesalers announced they will be hiking the cost of their services in the new financial year.

Despite the federal government’s intervention in the energy market, customers will see their electricity prices soar by as much as 25 per cent in NSW, South Australia and Queensland.

These costs will climb even further by up to 27 per cent for Victoria while Tasmanians will see an average increase of 9.51 per cent.

Chris Bowen has come under fire for his solution to lowering power bills for families. Picture: NCA NewsWire / Martin Ollman

The cost of energy was a prime point of discussion for ABC 7.30 host Sarah Ferguson who welcomed Mr Bowen as a guest on the show on Monday night.

Ferguson touched on the Albanese government’s promise to lower electricity prices by $275 a year by 2025, how many households will be eligible for energy rebates and when prices will decrease.

However it was a question on how families can manage their electricity bills during such financially difficult times that sparked the most controversy.

Ferguson asked Mr Bowen: “How can families best protect themselves against these rising prices, what can they do?”

The Energy Minister responded by saying the government recognises the stress such costs “across the board” are having on families.

“There’s all sorts of pressure on Australian families and we know that very acutely, and I think families are making those decisions, I know the demand for solar is absolutely massive,” he said.

“You can reduce your power bill substantially by putting solar panels on your roof.”

Power bills are increasing by as much as 27 per cent in some parts of the country this month. Picture: NCA NewsWire / Andrew Henshaw

Noting the cost of solar panels, Ferguson interrupted Mr Bowen by stating: “That‘s assuming you have got the money to put those panels on your roof”.

“Yes, things like solar panels and batteries are a big cost but there is also support there through our $1.7 billion energy savings package, the number of firms are very active in no interest loans or low interest loans to do that,” Mr Bowen hit back.

“It’s not everyone’s answer but it is a very important part of the mix, of course families are looking at all sorts of decisions to reduce their energy cost.”

Solar panels cost anywhere between $2500 to 22,000 depending on what brand and wattage is purchased, according to solarquotes.com.au.

Various government rebates can assist with such costs, however it doesn’t completely cover it making it hard for poorer Australians to be able to afford such a solution.

Australians have slammed the solution saying not all can afford solar panels. Picture: Ben Clark

Therefore such a solution proved unhelpful to some Australians, with many taking their frustrations online.

“So we know that most politicians are out of touch with the general public. Chris Bowen, Energy Minister, proved that (on Monday) with his ‘solution’ to rising energy costs: “Put solar panels on your roof’,” one woman posted on Facebook.

“Hmm, let‘s see. Mortgage owners are facing a 12th interest rise today if the RBA decides to go down that route, and people who rent don’t have the option to do that.

“Maybe come up with a better solution, like decreasing our power bills by $275, as you promised prior to the federal election.”

Mr Bowen couldn’t answer when power prices will decrease. Picture: iStock.

Another person tweeted Mr Bowen’s solution would only work in the favour of mortgage holders who could afford renewable energy like solar panels.

“When Chris Bowen is talking about giving households and families (a) choice on energy, he‘s talking about homeowners,” they said.

“They‘re doing f**k all for renters. The poorest are trapped with spiralling energy bills.”

A third questioned: “Switch to Solar? Who pays for the installation cost?”

Also fuelling the uncertainty was Mr Bowen’s inability to answer Ferguson’s question on when power bill prices will come down.

“Well, um, of course power prices are fluctuating internationally. There‘s a lot of pressure coming out of Europe at the moment, a lot of changes in the European situation in Ukraine,” he rambled.

The Energy Minister said the situation in Ukraine was influencing prices. Picture: NCA NewsWire / Brenton Edwards

“But very clearly the policy agenda indicates getting more renewables into the system backed up by storage and by firming which is absolutely essential, is the best way of seeing the cheapest possible energy prices in very difficult international circumstances.”

In response, Ferguson asked: “Does that mean we should gear ourselves up for further price rises?”

“Well, let’s see what happens in Ukraine and Russia, let’s see what happens across the board,” Mr Bowen said.

“Clearly we acknowledge we will need to continue to work with Australians to take the pressure off power price rises through short-term interventions that we’ve done and more medium and longer term.”

More information on the eligibility criteria to receive a rebate for the installation of solar panels is available on the Australian government’s Clean Energy Regulator website.

Originally published as ‘The poorest are trapped’: Bowen under fire for ‘out of touch’ solution to power bill crisis