The Australian Energy Regulator has today released its Default Market Offer, which sets the maximum amount retailers can charge. It means power prices could rise from July 1 this year by between 21 and 24 % for some customers in NSW, South Australia and South-East Queensland in line with the Default Market Offer. Other power bills may or may not rise.
The following spokespeople are available for comment.
Nic Seton, CEO Australian Parents for Climate Action
Nic can talk about the impact high power prices are having on families and the need for greater investment in renewable energy to help ease the cost of living.
“Households across Australia are experiencing a cost of living crisis, with families hit by increasing prices for food, electricity, gas, housing and petrol. Our survey of parents last year found many families are experiencing anxiety and stress as they try to make ends meet. “ Nic Seton said.
“While the budget measures on bill rebates and energy efficiency measures are welcome - to really drive down power prices long term we need more renewable energy in the grid.”
Location: Sydney, NSW
Stephanie Bashir, energy expert with over 20 years experience in the sector, CEO and Principal of Nexa Advisory. (Stephanie is not available for interview)
Stephanie Bashir said: “The AER’s default market offer price for residential consumers rises between 19-25%. The Federal Governments market intervention last year introducing the price caps on gas and coal prices meant some protection from the full price rises. However, we need a plan to expedite the transition away from the aging coal and dependence on gas generation to cleaner and cheaper renewables and storage to ensure consumers are better off.“
“The clean energy transition is critical to meeting Australia’s climate targets, energy security and supply stability, and controlling and abating cost of living pressures on Australians. “
“New transmission is essential to achieve the clean energy transition, allowing renewably generated electricity to reach the market Australia customers. However, delivering them is taking too long for a number of complex, but resolvable reasons. These delays in building new transmission lines have negative consequences for electricity customers.”
“Our modelling with Endgame Economics shows delay in delivering new transmission results in higher bills for consumers. The modelling shows avoiding the cost of building new transmission does not lower consumers’ electricity bills. The increase in the wholesale cost of electricity due to delays far outweighs any ‘saving’ from not building the transmission or delays, because low-cost renewable electricity cannot then be utilised widely in the National Electricity Market.”
Finance and energy analyst, Tim Buckley, Clean Energy Finance
Tim Buckley said: “It is important to note that the expected electricity price rises in the AER's default market offer are, as the AER says, about the half the hike that might have happened without the Albanese federal government's timely and critical intervention to cap wholesale fossil fuel prices at the end of last year.
“We expect that this could well be the peak in absolute electricity and gas prices at the retail level. There is a massive lag in the system in passing through the 2022 hyperinflation of fossil fuel commodity prices, which in turn squeezed up electricity prices to record Australian highs. Even with slow rises in grid transmission and distribution costs per capita, retail prices should decline from July 2024 onwards.
“It is really important for Australian consumers to understand that unlike inflationary fossil fuels, renewables are progressively deflationary, even including firming costs. For example, we expect solar module prices to decline by 10% per year over the rest of this decade, re-engaging the decade long trend seem since 2010. “
Location: Sydney, NSW
Dr Carl Tidemann senior researcher Climate Council
Nathan Hart, Energy Transformation Campaigner, Climate Council.
Nathan Hart and Dr Carl Tidemann can talk about how solutions like improving the energy efficiency of buildings and switching from gas to electrical appliances can help Australians cut their energy bills. They can talk about the government policies needed to help every Australian access these cost-saving energy solutions.
“Dr Tidemann said: “about 10% of residential customers would be hit by this price rise and it was a good reminder to shop around. Many retailers will have lower rates if you call or check online” he said.
Location: Dr Carl Tidemann is in Sydney, NSW
Nathan Hart, is in Melbourne, Victoria
Also available for interview Thursday May 25: Andrew Stock, Climate Councillor, energy expert, former Origin Executive and past Director of the Clean Energy Finance Corporation
Contact details:
To arrange interviews or more quotes, please contact:
Jacqui Street, Climate Media Centre 0498 188 528 / [email protected]
Jemimah Taylor, Climate Media Centre 0478 924 425 / [email protected]
