Sometimes {sarcastic} humour is the only defence left in an increasingly inhospitable world

 

Some social media posts use humour to criticise the supermarkets' prices.(Instagram: Grassroots Action Network Tasmania). ABC News, 8 September 2023

Coles announces new series 'Feed your family for under $1,000' https://t.co/2vRDyfgdzj

— The Chaser (@chaser) September 6, 2023

via @ChrisHeHim1

On 30 August 2023 the Australian Bureau of Statistics released its Monthly Consumer Price Index Indicator for July 2023 showing the monthly CPI indicator rose 4.9% in the twelve months to July, with the most significant price rises being Housing (+7.3%) and Food and non-alcoholic beverages (+5.6%) - supposedly offset by a fall in Automotive fuel (-7.6%). Rent was listed as rising by +7.6% and electricity rose by +15.7%. While the Insurance and financial services category was recorded at +8.5%.

It is getting harder and harder for those on low fixed incomes to afford a range of healthy fresh food, better quality dried/processed food, milk, tea, coffee, juice, condiments or even enough bread for a fortnight. Right now it feels like a visit to Coles or Woolworths costs three times as much for half the number of items.

Prices are misleading at ⁦@Coles⁩. $1.70 x 2 = $3.40. Yet Coles’ down-down “specials” show “2 for $4”. How widespread is this mathematical duplicity? ⁦@acccgovau⁩ is on the case but time for consumers to protest about theft in advertising. ⁦@hijessicayun⁩ SMH. pic.twitter.com/TqpYEmy1HZ

— Quentin Dempster (@QuentinDempster) September 6, 2023

As for medications - by the time one is standing at the pharmacy checkout prices are becoming prohibitive - over $61 for around 28 days supply of just six of the eight medications required on a daily basis is not unusual.

When it comes to those unexpected out-of-pocket expenses involving GP or medical specialist visits - those expenses often need 'robbing Peter to pay Paul' budgeting - with many GPs even charging an additional fixed fee just to put your behind on the consulting room chair. One of those chairs would bring in around an extra $240-$320 per 8hr day on top of the medical consultation fees accrued for that working day.

Of course the need for new clothing or shoes frequently loses out to all these other living expenses.

It's no wonder second-hand stores & food banks have so many customers these days.

Morrison Government determined to turn Clean Energy Finance Corporation into a slush fund for the benefit of its fossil fuel industry mates?

The Clean Energy Finance Corporation (CEFC) was established in 2012 to facilitate increased flows of finance into the clean energy sector.

It has been provided with access to $10 billion in capital and

invests directly and indirectly, in clean energy technologies.

These clean energy technologies include: energy efficiency technologies; low emission technologies; and renewable energy technologies.

As of 30 June 2020 CEFC had investment commitments (deployed and contractually committed capital) of $5.95 billion.

The uncommitted $4.05 billion is firmly in the sights of the Morrison Government who would like to see this money go to its major donors in the fossil fuel reliant energy industries.

Commencing with carving our an initial $1 billion to to establish a Grid Reliability Fund to support the largely privatised, heavily coal-reliant, electricity supply corporations.

Clean Energy Finance Corporation Amendment (Grid Reliability Fund) Bill 2020 is back before the House of Representatives today.

The Sydney Morning Herald, 4 February 2021:

Federal Labor remains opposed to a proposed overhaul of Australia's clean energy fund rules aimed at fuelling investment in gas power plants and grid infrastructure despite a shake-up in its approach to climate policy.

The Morrison government's plans to change laws that stop the Clean Energy Finance Corp from investing in conventional fossil fuels and remove a rule that prevents it from investing in loss-making projects will be debated in Federal Parliament today.

The proposed changes will apply to the taxpayer-funded green bank's $1 billion Grid Reliability Fund, making it responsible for an underwriting scheme to encourage private companies to build new power supply.

New climate and energy spokesman Chris Bowen said Labor would only support the changes it if is successful in amending the legislation, including rejecting the proposed definition of gas as a low-emissions energy source.

"Labor created the CEFC and has consistently protected its integrity," Mr Bowen said yesterday, after he last week replaced Mark Butler after seven years in the portfolio.

"We'll be putting forward sensible amendments to ensure the CEFC won't be turned into a slush fund, and can only invest in economically viable, clean energy projects.

"If the government is able to move past its paralysing internal climate wars and accept these amendments, we will support the bill."….

The CEFC was created in 2012 under a deal between Labor, the Greens and independents with a mandate to invest in renewable energy, low-emissions technology and energy-efficiency projects that would deliver a return. 

Renewable energy power generation continues to be predicted as cheaper than Morrison Government's favoured fossil fuel alternatives

Renew Economy, 6 February 2010:

An updated study on current and future generation costs by the CSIRO and the Australian Energy Market Operator confirms that wind, solar and storage technologies are by far the cheapest form of low carbon options for Australia, and are likely to dominate the global energy mix in coming decades.

The first report, GenCost 2018, identified that wind and solar were by far the cheapest forms of new generation technologies, clearly cheaper than coal, and even when combined with storage, remained easily the cheapest form low carbon electricity options.

A draft of the updated study, GenCost 2019-20, has been quietly posted on the AEMO website and confirms that wind and solar and storage remain the cheapest technologies, now and into the future, and much cheaper than the technologies promoted by the Australian government – gas, carbon capture, and nuclear.

The study is jointly funded by the CSIRO and AEMO, although CSIRO took carriage of the report, along with advisors Aurecon, who succeeded GHD which did the first version.

Its capital cost estimates – which assume continue cost reductions for solar, wind and dramatic falls for batteries, remain little changed from the 2018 version, although wind cost reductions are lower than expected last year…..

Read the full draft report:

GenCost 2019-20: preliminary results for stakeholder review Draft for review, Paul Graham, Jenny Hayward, James Foster and Lisa Havas December 2019.

That neither expert opinion nor the Australian Government's international obligations matter to Prime Minister Scott Morrison and his hard right cronies is demonstrated by the fact that they are prepared to spend up to $4 million on a feasibility study for a 1GW coal-fired power plant at Collinsville in Queensland, with coal presumably sourced from a nearby open-cut coal mine owned by Glencore.

Glencore stategically places most of its political donations with state governments of the day. 

Lower Clarence experienced two prolonged blackouts within three days

Twice within three days the Yamba area was plunged into prolonged darkness.

The second blackout on Tuesday 1 October 2019 was caused by a pivotal substation malfunctioning and catching fire.

This left 6,500 people without lights or power and local businesses had to close their doors from around 6pm under about 10pm when Essential Energy restored power.

The exception on both occasions was Yamba Bowling Club (the designated bushfire/flood emergency gathering point) as it has a generator.

Media reports state that The Bowlo was packed last Sunday after Yamba homes went dark, as sports fans piled in to watch Australia take on Wales in the Rugby World Cup.

Unfortunately other businesses suffered in these blackouts, with one hotel reporting a loss of $19,800 in expected revenue.

So much for Liberal-Nationals boasts concerning regional jobs growth in 2019

After Australian Prime Minister Scott Morrison abandoned the Coalition's proposed National Energy Guarantee which would allegedly reduce polluting emissions and lower electricity retail costs, the energy sector remains in disarray.

One hundred and sixty-five jobs are at risk across regional News South Wales as Essential Energywhose operational footprint covers 95 percent of the state apparently considers downsizing employee numbers as a cost-cutting measure is the best way to gain the Morrison Government’s approval.

In all probability hoping that this move will appease Morrison and he will then decide to forget his promise to force all energy companies to lower their prices.

Sadly, this is just the sort of short-sighted approach to cost cutting which ‘The Liar From The Shire’ would approve.

Though how downsizing staff leads to better customer service under The Energy Charter I am at a loss to understand.

The Daily Examiner, 4 July 2019, p.1:

Methods used to determine who stays in a job at Essential Energy have been likened to the battle for survival in sci-fi film Hunger Games.

The Electrical Trade Union claims workers will be pitted against each other to save their own job and asserts that the company has told workers Grafton will be one of the hardest hit in a plan to slash 165 jobs across regional NSW.

The Daily Examiner was told of workers being asked to write letters to state why they should keep their job.

ETU secretary Justin Paige slammed the announcement of cuts, saying the use of forced redundancies along with a “Hunger Games” style competition between workers was causing unnecessary hardship.

“Workers have been given less than a week to respond to the plan, with the first staff to be made forcibly redundant as early as July 10, but we are examining every legal and industrial avenue available to stop them,” Mr Paige said.

“The worst part is many of these cuts will be undertaken through what management have called a ‘merit selection process’, which will essentially pit workers against each other to save their own job.

Clarence MP Chris Gulaptis and Deputy Premier John Barilaro poured scorn on the proposed job losses…...

The Daily Examiner, 5 July 2019, p.3:

The ALP has accused Nationals MPs of hypocrisy over their response to Essential Energy sacking 182 employees.

Member for Lismore Janelle Saffin said it was the height of hypocrisy for Nationals MPs like John Barilaro and Chris Gulaptis to claim they are fighting against Essential Energy’s regional job cuts.

Ms Saffin said the Nationals allowed Essential Energy to be corporatised so they could bleat all they like but lost their say in the matter when they agreed to the sell-off.

“The Nationals’ excuse was that a Restart fund would be set up from the proceeds of the sale and that regional and rural NSW would get 30 per cent of the proceeds annually,” Ms Saffin said. “They never even delivered and failed regional NSW. The Auditor General has showed year after year since 2011 that Restart has not met the Nationals’ 30 per cent target – it was 17 per cent last year.

“The Nationals lost three seats at the recent State election, which is why John Barilaro is now posturing that his hapless party is suddenly independent of the Liberals.”

Ms Saffin said she was saddened to hear of Essential Energy’s plan to sack more workers as it was a cruel blow to them and their families, and would make it harder on remaining workers maintaining or upgrading infrastructure.

“Essential Energy, which operates electricity poles and wires across 95 per cent of the state, has gutted more than 2000 jobs from their ranks since 2015,” Ms Saffin said.

“It is hard enough to get permanent roles in the regions and while jobs have grown in the city it has been slow here…..

The Daily Examiner, 8 July 2019, p.3:

Essential Energy has hit the pause button on its moves to cut 182 job across Northern NSW after a Fair Work Commission meeting which called for the company to provide further information to its workers.

On Friday power industry unions reached an in-principle agreement with Essential Energy in the Fair Work Commission that paused planned job cuts until additional consultation took place.

The agreement means no jobs will be lost before mid-August, with unions given an opportunity to propose alternative cost saving measures and initiatives that could avert the need for redundancies.

Essential Energy committed to distributing information to all employees by July 19 that includes: the justification for role reductions, the specific impacts of cuts on remaining team members, and details of the tasks or functions that will cease to be performed.

Essential Energy also committed to consider alternative savings measures before redundancy decisions.

Electrical Trades Union secretary Justin Page welcomed the outcome, saying it was vital workers could identify alternatives to regional job cuts.

“This is a tough time for Essential Energy workers, their families and colleagues,” Mr Page said.

“After four years of deep staffing cuts at Essential Energy – which has not only devastated those workers directly impacted, but has had profound impacts on service delivery and regional communities – today’s reprieve is extremely welcome, but is just the start…..

Scott Morrison doesn't know watt's watt

This was the ‘interim’ Australian Prime Minister Scott Morrison on ABC TV The Drum, 23 September 2018:

SCOTT MORRISON: I want more dispatchable power in the system.

ALAN JONES: Could you stop using the word dispatchable? Out there they don’t understand that.

SCOTT MORRISON: Well, real power, OK?

ALAN JONES: Real power.

SCOTT MORRISON: Well, fair dinkum power.

So what exactly is this “dispatchable power” the Prime Minister is talking about whenever he cites “fair dinkum power” that “works when the sun isn’t shining and the wind isn’t blowing”.

This is what Energy Education:has to say on the subject:

Dispatchable source of electricity

A dispatchable source of electricity refers to an electrical power system, such as a power plant, that can be turned on or off; in other words they can adjust their power output supplied to the electrical grid on demand.[2] Most conventional power sources such as coal or natural gas power plants are dispatchable in order to meet the always changing electricity demands of the population. In contrast, many renewable energysources are intermittent and non-dispatchable, such as wind power or solar power which can only generate electricity while their energy flow is input on them.

Dispatch times

Dispatchable sources must be able to ramp up or shut down relatively quickly in time intervals within a few seconds even up to a couple of hours, depending on the need for electricity. Different types of power plants have different dispatch times:[3]

Fast (seconds)

Capacitors are able to dispatch within milliseconds if they need to, due to the energy stored in them already being electrical, whereas in other types of power storage such as chemical batteries the power must be converted into electrical energy.

Hydroelectric facilities are also able to dispatch extremely quickly; for instance the Dinorwig hydro power station can reach its maximum generation in less than 16 seconds.[4]

Medium (minutes)

Natural gas turbines are a very common dispatchable source, and they can generally be ramped up in minutes.

Solar thermal power plants can utilize systems of efficient thermal energy storage. It is possible to design these systems to be dispatchable on roughly equivalent timeframes to natural gas turbines.

Slow (hours)

While these systems are typically regarded as only providing baseload power, they often have some flexibility.

Biomass

Nuclear

Coal

Many coal and biomass plants can be fired up from cold within a few hours. Although nuclear power plants may take a while to get going, they must be able to shut down in seconds to ensure safety in the case of a meltdown.

What this tells us is that renewable energy can and is used as “dispatchable power” and often responds faster than coal-fired power.

Battery storage by way of home battery installations and mega battery installations such as the Tesla system in South Australia are just two successful examples of storing renewable power for later use – making it dispatchable power.

According to the Melbourne Energy Institute, South Australia’s new mix of renewables and traditional source of energy is working well.

What has become increasingly obvious over the years is that once renewable energy via wind and solar reaches a reasonable scale it becomes cheaper than coal and other fossil fuels. That is where Australia is now.

Yet Scott Morrison apparently doesn’t understand how electricity generation and the national power grid work – it’s a though he has been asleep for the last decade. Because he appears to believe that renewable energy systems have not evolved to meet market demands.

Therefore, based on his erroneous views Morrison states he is “going to force them [electricity wholesalers] to put more fair dinkum, reliable energy, power, into the system”.

Which in his mind means more coal-fired power.

Expensive, polluting, coal-fired power supplying electricity to Australian homes at maximum cost to ordinary consumers.

Australian Politics 2018: This Federal Government Can’t Do Anything Right

Reared with a sense of righteous self-importance, fed on a diet of IPA ideology with a side dish of entitlement, brought to Canberra by the Old Boy’s Network, then fattened into self-complacency by the political perks of office, this particular Coalition Government (which took the reins of government in 2013 and kept them in 2016) was always a puny failure.

Faced on a daily basis with its own failings this clueless federal government scrabbled about for years before turning bitter, vindictive and intent on destruction.

Here is yet another example of the Morrison Government’s inability to do more than spin its wheels…..

Financial Review, 26 October 2018:

Federal energy minister Angus Taylor's roundtable aimed at forcing big energy companies to lower their standing offers for retail power by January 1 is under a cloud because of real fears this could amount to an illegal cartel.

Energy industry sources say the legal risks of breaching cartel laws - jail terms and massive fines for individual executives - are too great for them to risk at a roundtable at which issues of pricing will be hanging in the air even if not explicitly discussed.

Mr Taylor dismissed suggestions that the round table could breach competition laws.

"Of course we're not going to breach the Australian laws; we don't do that," he told reporters after the COAG Energy Council meeting in Sydney.

But he signalled that all the invited retailers may not attend the round table, at which the government would outline its policies and expectations that the sector will deliver price cuts for consumers.

"We're looking forward to as many electricity providers coming to the round table as want to come along," Mr Taylor said.

The energy companies' fears of breaching the cartel laws are heightened because they have been under permanent surveillance on pricing by the Australian Competition and Consumer Commission for the last 18 months and the government recently extended that monitoring until 2025.

As well, cartel laws have been widened to include so called "signalling" and other forms of tacit agreement falling short of explicit price fixing agreements during the last decade because offences were too difficult to prove in court under the previous, much stricter definition.

Mr Taylor wrote to energy companies on Tuesday inviting them to a "roundtable" to discuss the reductions in their standing offers they will be required to make for January 1, 2019 - before the July 1 scrapping of standing offers which are to be replaced by the "default" tariff to be set by the Australian Energy Regulator by April 30.

 Read the full article here.

When you are on a low income and you rent governments have a tendency to place you in the too hard basket when it comes to clean renewable energy schemes

The Australian Census found that in 2018 the NSW state population stood at 7.48 million people.

An est. 826,922 or 31.8 per cent of these individuals lived in rental accommodation.

Over 15.2 per cent of NSW renting households are paying between est. 25.1% and 50% or more of gross weekly household income in rent.

These people cannot afford to enter this new Berejiklian Coalition Government renewable  energy scheme, because as renters they have no real security of tenure and would be permanently foregoing a $285 annual  low income household rebate with no hope of recouping the initial $3,500 solar panel installation cost when their landlords refuse to renew the lease or sell the property.

Indeed, I rather suspect that like other home solar power incentive schemes certain categories of renters would be ineligible to even apply.

Energy NSW, 28 September 2018:

The NSW Government has announced $15 million in clean energy funding for a new solar program aimed at saving low-income households hundreds of dollars each year on their power bills.

Acting Secretary of the Department of Planning and Environment, Dr Liz Develin said up to 3,400 households are expected to take part in the voluntary program which will see homes receive 2.5 kilowatt solar power systems if they forgo their Low Income Household Rebate.

The trial scheme will be rolled out in five selected State regions that will maximise the benefit of solar for local households.  The regions are: Sydney – South, Central Coast, North Coast, Illawarra – Shoalhaven and South Coast.

“The bill savings from the rooftop solar trial are expected to be close to double the value of existing rebate savings with an average bill reduction of $600 per household per year. This means that households who choose to participate in the program could be around $300 better off each year,” Dr Develin said.

“The program is entirely voluntary and eligible recipients will be able to reap the benefits of the program by transferring off the rebate program in return for a rooftop solar system.

“We know energy bills are placing pressure on low-income consumers, so we must ensure that we are doing everything we can to offer support for struggling households.”

The latest round of clean energy funding has now seen a direct injection of over $170 million into providing energy bill relief for households and businesses, including in regional NSW.

For more information about the solar program go to: www.energy.nsw.gov.au

Let's talk about Australian Prime Minister Scott Morrison's inability to face the truth about renewable energy

This was then Australian Treasurer Scott Morrison in late July 2017 on the subject of the Tesla battery planned to be used as part of the power grid in South Australia.

"By all means have the world's biggest battery, have the world's biggest banana, have the world's biggest prawn like we have on the roadside around the country...30,000 SA households could not get through watching one episode of Australia's Ninja Warrior with this big battery. So let's not pretend it is a solution."

Now when Morrison was mocking the South Australia government of the day he knew full well that the Tesla battery was never intended to supply energy in the same manner as a coal-fired power station – it was always intended to boost supply to keep energy flow from dropping below 49.2Hz and therefore minimise load shedding/brownout events. Media had discussed the issue in some detail.

Tesla boss Elon Musk built the battery facility within 100 days and the 100-megawatt lithium ion battery was switched on late last year to provide reserve capacity from renewable energy for the state’s electricity network.

According to the Australian Energy Market Operator (AEMO) executive general manager of operations Damien Sanford; "Its ability to respond very, very quickly to the different types of conditions that we see on the power system has been very encouraging for us". 

He told ABC News in October 2018 that; AEMO's data shows that it can dispatch power far more rapidly and precisely than conventional thermal power stations and more swiftly and accurately than the market operator thought possible — while also pushing down prices.

"We've been pleasantly surprised and would encourage more of this technology into the grid," Mr Sanford said.

ABC News also reported that; In the first quarter of this year, the cost of FCAS [Frequency Control Ancillary Services] fell by nearly $33 million, or 57 per cent, according to AEMO — in large part because of the introduction of the Tesla big battery.

The Tesla battery proved it worth in September 2018 when South Australia was isolated from the main grid by a lightening strike explosion in another state but despite this situation Morrison's 30,000 televisions were unaffected.

Once more a Coalition federal government is promising savings on household electricity bills

“Throughout the 1980s, '90s, and most of the 2000s, electricity prices tracked fairly closely to general consumer price trends. In the past decade, however, electricity has shot off the charts. Since 2008 power prices have risen 117 per cent, more than four times the average price increase across sectors.” [ABC News, 18 July  2018]

All three major NSW political parties - Liberal, Nationals and Labor - along with their federal counterparts drank the Kool-Aid when it came to the alleged desirability of privatising state assets in the electricity and gas sectors of energy supply.

Here is a brief outline of the how and why...... 

DECEMBER 2010

THE NSW [Keneally Labor] government has sold a giant slab of the state's electricity assets for $5.3 billion, completing a late-night deal with power generators that the opposition says secures only half of what the assets are worth and experts say will mean higher electricity bills…..

"The completion of this first tranche of the energy reform process meets the government's objectives – we have exited electricity retailing, we have created a competitive market structure approved by the ACCC and we have received a strong financial return for the taxpayers of NSW,” he [NSW Treasurer] said…..

Earlier, the shadow treasurer, Mike Baird, said: "Whatever they finally announce, it is clear from the ongoing speculation that the receipts will be at the lower end of the $5 billion to $7 billion range, which is about half what these assets are worth – and that is before you take off the $2.3 billion in inducements for the new coalmine needed to get the deal away.

'The end result is billions of dollars lost forever."

A UBS analyst, David Leitch, said: "NSW households are in for higher electricity tariffs and more people at their front door, trying to get them to change electricity supplier."

NOVEMBER 2013

After a three-year campaign to scrap the carbon tax, Prime Minister Tony Abbott has wasted no time in preparing legislation for its final destruction. He's demanding that the Senate pass it by Christmas….

"When this bill is passed, this Government estimates that power prices will go down by 9 per cent, gas prices will go down by 7 per cent, and that means that the average power bill will be $200 a year lower and the average gas bill will be $70 a year lower," Mr Abbott said on October 15.

JUNE 2014

In May 2014, the NSW [Baird Coaltion] Government signed up to the Council of Australian Governments (COAG) National Partnership Agreement on Asset Recycling (the Asset Recycling Initiative). Under the Initiative, the Commonwealth provides incentive payments equal to 15 per cent of the sale or lease proceeds that are reinvested in new infrastructure….

As of 12 May 2017, two government assets have been privatised in 2017. The most recent privatisation is the 99-year lease of a 50.4% share of Endeavour Energy. On 11 May 2017, the NSW [Berejiklian Coalition] Government announced that a consortium led by Macquarie Group's infrastructure arm had been successful in securing the tender for a price of $7.6 billion. Along with Ausgrid and Transgrid, the lease of Endeavour Energy represents the final of the three “poles and wires” sales – a key policy of the Liberal/National government in the 2015 State election. Announcing the sale, NSW Treasury stated:

The NSW Government will retain a 49.6 per cent interest in Endeavour Energy and will have ongoing influence over operations as lessor, licensor and as safety and reliability regulator.

June 2017

Two decades ago Australia embarked on an experiment with the privatising, corporatising and marketization of the electricity sector. The proponents at the time assured the nation that everything would be better…..

Electricity is now management heavy with a blow out in the number of managers relative to other workers. In addition electricity now employs an army of sales and marketing and other workers who do not actually make electricity. In addition the reforms seemed to encourage profit gauging on the part of companies in the industry who are able to inflate the asset base used in calculating the permitted return on assets. More than half the asset base appears to be ‘goodwill’ and retained earnings. There is a weird circular process in which high rates of return are capitalised in ‘goodwill’ and other fictitious or notional items while high profits guarantee high retained earnings which also feed into the asset base. In that way the unproductive capital base is allowed to increase and we are charged for capital that has no real function in producing electricity….

A host of factors have been blamed for the increase in electricity prices relative to other prices but we would point out that the main departure from the rest of the price index happened post privatisation and corporatisation.

JULY 2017

POWER prices are set to rocket after three major retailers announced increases of up to 20 per cent and $600 a year for the average customer in some states.

Origin, EnergyAustralia and AGL have all announced price increases for electricity and gas starting from July 1….

In NSW, residential EnergyAustralia customers will see electricity prices increase by up to 19.6 per cent. Origin Energy customers will get a 16.1 per cent rise.

DECEMBER 2017

Key [Australian Energy Market Commission] findings for New South Wales.

The key supply chain cost components examined in the report include wholesale electricity purchase costs, regulated network costs and environmental policy costs.

Annual electricity prices for the representative consumer on a market offer in New South Wales:

* increased by 10.2 per cent from 2016-17 to 2017-18 due to higher wholesale electricity costs, driven by the retirement of Northern and Hazelwood generators and increasing gas prices

* are expected to decrease by an annual average of 6.6 per cent in 2018-19 and 2019-20. The expected decreases are largely attributable to decreases in wholesale electricity costs driven by expected new generation (approximately 4,100 MW across the NEM) and the return to service of the Swanbank E generator (385 MW in Queensland). In addition, in NSW, regulated network costs are uncertain in the two years to June 2020 due to the AER being required to remake revenue determinations for the NSW distribution network providers for the 2014-19 regulatory control period.

JANUARY 2018

Electricity prices have jumped by six times the rate of the average pay rise, new figures reveal, as family wallets are increasingly squeezed by essential services such as education, utilities and fuel….

The most significant price rises were electricity, up 12.4 per cent, fuel up 10.4 per cent, domestic holiday travel up 6.3 per cent and fruit up 9.3 per cent. 

Across New South Wales, we found theaverage annual electricity bill to be just over $1,667. However, we found that bill-payers aged in their 40s reported the highest average bills in NSW at $1,911.76. Those aged 70 or over reported the lowest average bills at $1,466.40.

JULY 2018

Late last year, the government released independent modelling forecasting the average annual household bill would be $400 a year lower from 2020 onwards, based on 2017 prices.

This was comprised of $120 due to the [national energy] guarantee and $280 due to new investment in renewable energy that was already planned, mainly because of the Renewable Energy Target, which will run to 2030….

The ESB [Energy Security Board**] proposal increases the annual average saving to $550 on 2018 prices, of which $150 is due to the guarantee and $400 due to renewable energy.

AUGUST 2018

The Turnbull Government says the NEG* will save the average Australian household $550 a year on their power bill.

After reading the National Energy Guarantee Consultation Paper as well as the 1 August 2018 Final Detailed Design and listening to statements made by the Turnbull Government, I personally find it hard to believe this change in federal government policy will significantly limit the rate of increases to household energy costs over time when this is based on an assumption that the market will respond by lowering prices across the Australian wholesale and retail sectors of energy supply.

Talk of money 'saved' by households is illusory as It will certainly see no reduction in the actual amounts listed on 2019-20 household electricity and gas bills once this guarantee comes into effect.

*KPMG Economics, November 2017, NEG and Electricity Pricing

Network charges represent on average about half of the electricity supply chain costs, with generation and retail costs (combined into the ‘competitive market’ category) accounting for 42%, and environment policies adding the remaining 8%, based on the latest AEMC Electricity Price Trend report.

The make up of the total average retail cost is shown in Chart 6 which reveals the single largest component of the price of electricity is distribution costs, which represented about 40% of the average cost of electricity. Over the AEMC forecast period to 2018/19, these costs are still expected to represent by far the largest component of the electricity cost stack, albeit fractionally lower in a couple of years’ time.

The next largest component is the wholesale price of electricity, which in 2015/16 represented about 28%. Under the AEMC Base Case scenario – which includes the retirement of the brown coal fired Hazelwood Power station in Victoria – this cost component had been anticipated to rise steadily over the forecast period to represent about 30% of the cost of electricity by 2018/19.

As shown in Chart 7 below, these three jurisdictions experienced higher than anticipated wholesale electricity costs in the order of between 30% and 80% when compared to original forecasts for FY2016/17. When considered on a weighted average basis, using the same methodology applied by the AEMC to estimate the values for the National Summary, wholesale electricity costs have therefore been about 17% to 20% higher than anticipated.

This increase in wholesale electricity costs pushed the bundled cost of electricity to rise by about 5% higher than anticipated by the AEMC, and shifted the relative importance of wholesale prices in the cost stack from about 28% to 31%.

** Energy.gov.au, A Better Energy Future for Australia

Formed out of the Independent Review into the Future Security of the National Electricity Market (the Finkel Review), the Energy Security Board comprises an independent chair and deputy chair along with the expert heads of the Australian Energy Market Commission (AEMC), the Australian Energy Regulator (AER) and the Australian Energy Market Operator (AEMO).

The current Board membership is Chair Dr Kerry Schott AO,  Deputy Chair Clare Savage, Australian Energy Market Commission Chair John Pierce, Australian Energy Market Operator Chief Executive Audrey Zibelman, and the Chair of the Australian Energy Regulator Paula Conboy.