Jarrod Whittaker
Latrobe Valley electricity generators have reiterated their support for the National Electricity Guarantee after the nation’s energy ministers decided to press on with the policy despite disagreeing on key aspects.
At Friday’s Council of Australian Government’s Energy Council meeting, the nation’s energy ministers agreed to postpone a final decision on the policy while the federal government seeks approval from the Coalition party room.
They had been expected to make a final decision on the policy, despite state and territory Labor governments’ concerns that its emissions reduction target is too low.
If approved, the NEG is expected to reduce bills by $150 a year and cut emissions by 26 per cent on 2005 levels by 2030 but needs the unanimous support of federal, state and territory governments to go ahead.
AGL chief executive Andy Vesey, whose company owns Loy Yang A, tweeted on Friday welcoming the “positive steps” taken to deliver the NEG, saying it would increase investment and electricity supply.
Yallourn Power Station owner Energy Australia said it was up to the politicians to approve the policy.
“We would have preferred that Australia’s energy ministers endorse the national energy guarantee,” EnergyAustralia executive – energy Mark Collette said.
“We’d now like to see the federal and state governments set aside any differences, put the nation first and negotiate an outcome in the interest of consumers.”
Loy Yang B owner Alinta referred The Express to comments made by its chief executive Jeff Dimery to Fairfax Media last week that the company was “praying for an outcome, any outcome” from the Energy Council meeting.
Energy Minister Josh Frydenberg will take the policy to the Coalition party room on Tuesday, where it is expected to face resistance by rebel MPs led by former prime minister Tony Abbott.
Mr Abbott has previously argued the policy will not bring prices down and has threatened to cross the floor and vote against it.
If the Coalition party room endorses the policy, state and territory governments will be provided with draft amendments to the National Electricity Law which will implement the NEG following a council teleconference on Tuesday.
Federal member for Gippsland Darren Chester welcomed the Energy Council’s decision to let the NEG proceed to the next stage.
“By focusing on affordability and reliability we are taking a practical approach to
“This approach means coal can be part of the energy mix and should give confidence to Australians whose jobs rely on coal, and businesses who rely on coal-fired power.”
But despite the policy proceeding to the next stage, it is yet to receive support from Labor governments.
Victoria has issued a range of demands, including for three-year reviews of the emissions reductions target and that the target
Energy Minister Lily D’Ambrosio issued a statement on Friday saying the state government would not sign up for any scheme which threatened Victoria’s renewable energy industry.
