Nationals vote to remove renewable subsidies
Summary: Junior Coalition partner the Nationals have voted to remove all subsidies from renewable energy, a move the PIAA welcomes. The vote was made at the National Party’s federal conference in Canberra.....
According to BAEeconomics a research consultancy, renewable energy sources are set to receive subsidies of $2.8bn a year until 2030. However the Australian Energy Market Operator is predicting a 1000 megawatt energy shortfall in 2022 once Australia’s coal plants shut down.
For the past year, the PIAA has been discussing with various MPs including Josh Frydenberg Minister for Environment and Energy, about the energy crisis facing Australia which has seen some printers paying nearly triple on their bill.
Andrew Macaulay PIAA, CEO, says it is refreshing to see a political party making policy in the interest of the manufacturing industry and economy.
“Policy that is based in sound economics that understands supply and demands. Policy that understands you cannot interfere with supply without the price being affected. It is time the government acts to ensure reliable supply of cost effective energy to Australia.
“It is inexcusable that a resource rich nation like Australia that South Australia has the most expensive electricity in the world, New South Wales, Queensland and Victoria also rate amongst some of the most expensive countries globally. There is no reason for this other than the failure of government. It is good to see the Nationals have recognised this.”
The impact of the National’s decision is set to be strong, even now the prime minister is in a stand off with a major NSW coal fired power plant over its decision to close it.
In Western Australia, the Labor state government is planning to build wind farms which could mean higher power bills for residents.
WA power supplier Synergy has estimated $463.5m in the state budget that will be needed for the state government to meet its renewable energy target.
Macaulay is speaking to Frydenberg this afternoon on a number of energy related issues.
In July, Macaulay told the ACCC the unsustainable increases in electricity prices and unreliable electricity supply are a serious and immediate threat to the survival of print businesses and print industry jobs.
Macaulay says one Melbourne printer in particular will see its bill rise from $120,000 to $360,000 once its contract expires at the end of the year. He says the PIAA was the first to scrutinise the government over the energy crisis.
The ACCC is inquiring into the retail pricing and practices in the national electricity market with Treasurer Scott Morrison leading the investigation. A draft submission is due at the end of September with the full report in June, next year.
Printers in SA were impacted by a power outage in the state last year caused by lack of supply.