Push to lower emissions unlikely to impact on household power costs

Queenslanders’ power bills are likely to remain stagnant over the next decade despite the push to lower emissions.

Queenslanders will likely avoid electricity bill shock over the next decade despite the push to lower emissions, an expert has assured, just as Prime Minister Scott Morrison all but guarantees prices won’t increase.

Electricity bills are made up of about three main components; the cost of wholesale power, the cost of transport the electricity via the grid, and the cost the power retailer tacks on.

Grattan Institute energy program director Tony Wood said the entry of more renewable power in Queensland and into the grid would put downward pressure on power prices.

But the outdated transmission system, an issue faced nationwide, would need updating — a move that would cost money.

“The higher cost of the transmission will offset the lower wholesale electricity prices,” Mr Wood said.

“From where we are today, I would expect that wholesale prices will stay around where they have been at about $40 per megawatt hour”.

Prime Minister Scott Morrison, in announcing the government had committed to net zero emissions by 2050, promised the power bills of Australians wouldn’t go up.

But Australia Institute’s Richie Merzian said the Prime Minister can’t technically promise anything without revealing the modelling that underpins Australia’s net zero plan.

“It’s not a plan, it’s hope and marketing,” he said.

Originally published as Push to lower emissions unlikely to impact on household power costs