16 December 2016, The Conversation, Full response from Craig Kelly. In relation to this FactCheck on electricity prices, Liberal MP Craig Kelly sent the following comments and sources to support his statement: Firstly, RenewEconomy – a pro renewable energy website. They quote prices (in US cents per kilowatt hour) in the USA at 12 cents per kilowatt hour and Australia at 29 cents – so on their numbers it’s actually closer to 2.4 times higher rather than double. These costs are described as “average national electricity prices” which I’d take as both businesses and households. However, I’d note that these figures can bounce around a bit subject to exchange rate fluctuations. Secondly, a report titled Electricity Prices in Australia: An International Comparison by CME (an energy economics consultancy focused on Australian electricity, gas and renewables markets) concludes: “In 2011/12 average household electricity prices in Australia (just under 25 cents/kWh) were 12% higher than average prices in Japan, 33% higher than the EU, 122% higher than the US.” Read More here
Category Archives: The Mitigation Battle
15 December 2016, The Conversation, Rising power bills signal the end of an era for Australia’s electricity grid. Electricity bills are set to rise further for households, according to a report from the Australian Energy Markets Commission (AEMC). The report, released this week to coincide with the December meeting of the COAG Energy Council, forecasts that electricity bills will increase by an average of A$78 by 2018 in the five eastern states and the ACT. Together these comprise the National Electricity Market (NEM). The AEMC has prepared these three-year reports each year since 2010. But no report has received as much publicity as this one. This is largely because the latest report comes hard on the heels of the announcement that Victoria’s Hazelwood power station is to close – the largest power station closure ever in Australia. It also follows the release of a specially commissioned report by Chief Scientist Alan Finkel that opens with the words: “The physical electricity system is undergoing its greatest transition since Nikola Tesla and Thomas Edison clashed in the War of the Currents in the early 1890s.” So what does the latest report really say? Read More here
11 December 2016, The Guardian, On climate change and the economy, we’re trapped in an idiotic netherworld. The shrieks of horror that follow mentions of pricing carbon show politics remains wedded to the belief that economic growth trumps concerns of climate change. This week was a prime example of how economics and, by extension, politics doesn’t cope very well with the issue of climate change. The news that Australia economy went backwards in the September quarter was greeted with alarm by politicians and then used as a reason to push their policy barrow. And most of the barrows were piled high with coal. The treasurer and the prime minister in their press conferences on Wednesday made great mention of the need to keep electricity prices low for the economy to grow. Malcolm Turnbull especially was in full Tony Abbott 2010 mode out of a desire to cover the silly back flip on the issue of investigating whether or not to introduce an emissions intensity trading scheme. When asked about the prospect of GDP growth going backwards he immediately responded by suggesting the issue was for Bill Shorten to “explain why he is proposing to increase the price of electricity”. Never mind that such a scheme would more efficiently price emissions than does the current system, for now we remained trapped in an idiotic netherworld where any mention of pricing carbon (no matter how oblique) must be greeted with shrieks of horror, with the prime minister leading the chorus. And while you do wonder if Malcolm Turnbull ever looks in the mirror in the morning and asks himself how it all came to this – or whether he first rings Cory Bernardi to ask whether he is allowed to look into the mirror and ask such questions – the broader issue is that this netherworld is one that inherently sees action on climate change as a negative for the economy. And by contrast, the economic impact of anything that will cause climate change is seen as inherently positive. Read More here
8 December 2016, The Guardian, South Australia says states could go it alone after Turnbull rules out carbon tax. States could go it alone on a carbon scheme for the electricity sector after the federal government ruled one out, South Australia’s premier says. A report by the chief scientist, Alan Finkel, to be presented at Friday’s Council of Australian Governments meeting in Canberra, is expected to recommend an emissions intensity scheme. Jay Weatherill told ABC radio on Thursday he would be pressing for states to team up on their own scheme “in the absence of national leadership”. Weatherill would be discussing the idea with his counterparts before Friday’s formal meeting with the prime minister, Malcolm Turnbull. “Our first instinct is of course to seek a national scheme,” he said, but advice suggests it could be done without federal government support. Turnbull ruled out his government imposing an emissions intensity scheme following a backbench revolt over a review of climate change policy. He also left his environment minister, Josh Frydenberg, to explain why he said on Monday such a scheme would be looked at as part of the inquiry, only to deny mentioning it on Tuesday. On Wednesday, Frydenberg joined the prime minister in insisting one would not be introduced. Weatherill said power prices in his state would go down if an emissions intensity scheme was adopted. “It would clean up our energy system,” he said. Such a scheme would also encourage more base-load gas generation and increase competition. Finkel will brief premiers and Turnbull at the Coag meeting on Friday, after being commissioned to put together a national blueprint on energy security and reliability after blackouts across South Australia. Read More here