Energy transition bumpy and expensive, says honours list recipient

Australia is in for a bumpy and expensive ride as it transitions to a clean energy economy, with electricity price rises likely to affect more households, says Energy Australia chair Jane McAloon, who was honoured with an Order of Australia on Monday.

McAloon, a former BHP senior executive and current board member of a number of ASX-listed companies, said the country’s energy transition was one of the “most important imperatives that we face” and it needed to be well managed to ensure reliability of supply.

Jane McAloon is the chair of the Energy Australia board.Credit:

“There is an imperative to transition. It is uncertain, it’s bumpy, and it is expensive,” McAloon said. “Coal will come out, but we need to have confidence that the supply, the backup is there, that it’s functioning, that the transmission is there, the reliability is there and the firming capacity is there.”

As one of the country’s most respected business identities, McAloon was made a Member of the Order (AM) for significant service to the business and energy sectors. “It’s a great honour,” she said. “I really think that in business, you can effect major change.”

McAloon said she was more optimistic now that there was a “healthy level of engagement” between everyone with a stake in the energy sector.

“I think we’re all coming together in a way that’s heading in the same direction, maybe at different paces ... but the trajectory is the right way.”

Problems with Australia’s ageing coal-fired power stations and the war in Ukraine pushing up coal and gas prices will result in default electricity bills for households on the country’s eastern seaboard rising by 25 per cent from July 1, adding to cost-of-living pressures on consumers.

Energy Australia is “hyper conscious” of the impact on its customers, she said. “It’s fair to say that there are very difficult times being experienced by a great number of people and wherever we can assist customers, as they feel that pinch, that’s what we’re here to do.”

McAloon also sits on the boards of Newcrest Mining, BlueScope Steel, Allianz Insurance and law firm Allens. The businesswoman said her journey towards the top of the corporate sector began after her husband suicided when she was 34.

“Everything from there changed,” she said. “Once you’ve navigated your way through what all of that means, it brings you out the other side with an awareness of the importance of people, and never standing in judgment of people.”

McAloon spent 10 years in the NSW public service working in energy, rail, forestry and natural resources roles, before switching into business.

“I never thought that I could substitute the joy you feel in contributing to the team for social purpose in the public sector, but I found that in business,” she said.

“If you don’t have a holistic perspective about what you’re doing for customers, the environment, shareholders, then you lose your way.”

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