Federal Labor Minister Mark Butler has claimed in a media statement that the new National Energy Guarantee (NEG) provides no guarantee of cheaper electricity.
Mr Butler said the Turnbull Government adopted the policy without any economic modelling or Regulatory Impact Statement.
The lack of economic modelling was confirmed by the Australian Energy Market Commission’s (AEMC) Chairman John Pierce. He said a more detailed analysis will be provided before the Council of Australian Governments (COAG) meeting in November.
The Federal Treasurer also confirmed no Regulatory Impact Statement (RIS) has been done. A RIS is a requirement for Cabinet submissions where a decision is likely to have a ‘regulatory impact’ on organisations or individuals.
Labor NEG on NEG
State governments hit back at NEG-ative policy
As well as the Labor NEG response, several state governments are also critical of the policy, which will abandon subsidies for renewable energy projects such as large-scale solar power.
South Australia’s Premier Jay Weatherill has referred to it as a “coal energy target”. He also described it as a coal subsidy and a victory for the coal industry.
Victorian Premier Daniel Andrews said Malcolm Turnbull has allowed former PM Tony Abbott to “junk” the work of Chief Scientist Alan Finkel.
Victoria’s Energy Minister Lily D’Ambrosio called it a “backward plan” that would shatter investor confidence and put jobs at risk.
Ben Wyatt, Western Australia’s Energy Minister, said WA may “go it alone” after 2020 when the Clean Energy Target is abandoned.
The Climate Council also hit back. Climate Councillor Andrew Stock said the new policy provides no evidence of greater reliability and affordability. Mr Stock said renewable energy is “clearly the way of the future”.
The NSW government has been more positive about the policy, however. Energy Minister Don Harwin said through a spokesperson that the proposal has been welcomed and is being reviewed.
Turnbull must have the states’ backing
The NEG will need to be backed by state energy ministers at the COAG meeting in November.
Matthew Warren, chief executive of the Australian Energy Council, said COAG agreement will be “critical” for the new policy.
Without the support of the states, the Federal Government may need to rework the policy. However, the Turnbull Government considers it likely the plan will ultimately be supported, despite any current objections.
