NEG cost savings “nonsense”: States need to commission own analysis of cost implications

The Smart Energy Council has called on State and Territory Governments to commission their own analysis of cost implications of the National Energy Guarantee after energy experts destroyed the Turnbull Government’s claims of a $150 per annum reduction in power bills from the NEG.

Leading energy analyst Simon Holmes à Court from Melbourne University said it was “nonsense” to claim the NEG would save householders $550 per annum.

A straw poll of 16 leading energy analysts conducted by Mr Holmes a Court found that only one believed the NEG would reduce power bills, at all.

Professor Frank Jotzo of the ANU’s Centre for Climate Economics and Policy has said “people with a great deal of expertise can’t see how it adds up”.

The Turnbull Government’s claim of a $550 per annum reduction in power bills includes $400 p.a. savings from the Renewable Energy Target, which are already factored in and cannot be attributed to the NEG.

“The Turnbull Government has failed to provide any evidence the NEG will cut power bills,” said John Grimes, Chief Executive of the Smart Energy Council.

“The Government has refused to release the full economic modelling behind the NEG and failed to detail why this modelling differs profoundly from that of the Australian Energy Market Operator and leading energy analysts RepuTex.”

The State and Territory analysis should include all of the energy market realities ignored by the NEG modelling, including:

  • The full rollout of the Victorian Renewable Energy Target and Queensland Renewable Energy Target;
  • Tasmania’s Battery of the Nation project; and
  • The Tesla and Fluence big battery projects.

“State and Territory Governments need more time and more evidence before signing off on a national energy policy. 10 August is an artificial deadline, designed to suit the Turnbull Government’s political interests, not the national interest,” said Mr Grimes.

Media contact: Peter Stahel 0408 584 439

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