A NEW REPORT from the Climate Council shows that gas corporations and unreliable coal are the two biggest drivers of high power bills, while major electricity retailers -- who own most of our coal and gas generators -- are making huge profits.
Power Games: Who’s driving high power bills? notes that although fossil gas only provides around 5% of electricity in Australia's main grid, it sets the wholesale electricity price up to 90% of the time.
Climate Council CEO Amanda McKenzie said: “Expensive gas and increasingly unreliable old coal power is relentlessly pushing up our power bills.
“Fortunately renewables in the system have lowered average household electricity bills by up to $417 in 2024, saving households a collective $3.8 billion. The faster we get more renewables online, the more we’ll all save.
“Australians are world leaders in taking up solar on our roof tops and those households are saving $1500 a year on average. But more renewables and batteries in our grid means everyone has access to this cheap, clean energy.”
The Power Games report also finds that a system in which expensive gas sets prices for everyday Australians is compounded by complex and at times misleading billing, meaning that electricity consumers who don’t shop around regularly pay the price with a loyalty fee. Around 2.5 million households (37%) are paying more than they should for electricity. These households could save $291, on average, by just switching to a better offer.
South Australians are slugged with the highest loyalty fees, paying $408 more than they need to by staying with the same retailer, followed by those in NSW ($303), Victoria ($269) and Queensland ($213).
Climate Councillor and the report’s co-author, Associate Professor Joel Gilmore, said: “This research makes a clear and definitive case: gas and coal are the two big pressures on rising electricity prices.
“Those who would advocate for keeping coal power stations open are essentially arguing for higher household bills because of the role these clunkers play in pushing up power prices. Rusty old coal power stations are literally falling apart around us – they’ve become so unreliable that even the operators agree it’s no longer economically viable to keep patching them up.
“The only thing you can count on when it comes to a coal-fired power station is that it will keep breaking down, and causing electricity price spikes.
“We are lucky enough to have abundant natural resources in our solar and wind, and we should make the most of them. Expanding renewable energy, storage and the necessary poles and wires to deliver more of this low-cost fuel will drive down prices over the long-term, and protect households and businesses against volatile international markets.’’
Fellow Climate Councillor and energy expert, Greg Bourne, said: “Gas is the stealthy price setter, tethering our household budgets to volatile and high-cost global markets.
“They have made close to $100 billion in extra revenue since the invasion of Ukraine in 2022, and the current uncertain international environment could well expose us to further turbulence.
“That’s why bills are high. If we delay the roll-out of renewable energy and storage, our household and business power bills will only get higher.’’
ENDS
For interviews please contact Warwick Green on [email protected] or 0439 647 144 or the Climate Council media team on [email protected] or call 0485 863 063.
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