The Australian Energy Regulator (AER) has released its Default Market offer (DMO). See expert responses below:
Andrew Stock, Climate Councillor, energy expert, former Origin Executive and past Director of the Clean Energy Finance Corporation said:
“The significant increases in electricity prices for consumers approved by the Australian Energy Regulator (AER) today demonstrate that Australia must get off fossil fuels – and fast. Big increases in fossil fuel costs for gas and coal are the main reason behind the big increases.”
“NSW and Queensland are seeing the biggest percent increases because they still rely heavily on expensive gas and coal, and their old coal power stations increasingly fail. South Australia, which has much more renewable electricity, sees far lower increases, and expensive gas is the main reason for the increase there too.”
“These results show once again that Australia must implement plans to get off expensive, polluting and unreliable fossil fuels fast. The previous Federal Government stalled the transition to renewables wherever possible, causing investment in large scale new renewable capacity to collapse, backed fossil fuel expansion, and put off coal closure. It demonstrates starkly just how much of an expensive energy failure the policies of the former Morrison Government have been. Now electricity consumers will be forced to pick up the tab.”
“The climate and energy wars have cost Australian consumers dearly. Their impacts will be felt for years to come because most of the nation has wasted a decade in the energy transition to renewables. Now we need the new Australian federal government to get on with it and show strong climate leadership.”
Nicki Hutley, Climate Councillor, leading economist and former Partner at Deloitte Access Economics said:
“This demonstrates the cost of remaining heavily reliant on fossil fuels for energy. Soaring energy bills for many households will exacerbate already significant inflationary pressures. Much of the price pressure comes from global factors, notably the Russian invasion of Ukraine. But this underscores our need to reduce our reliance on global factors, which European nations in particular are already planning as fast as possible.”
“As one of the sunniest and windiest countries on earth, we have the tools we need. Governments can step up by attracting capital and by investing in more labour skills to support the transition.”
“South Australia is showing the rest of the nation how investing in renewables delivers greater returns to households and businesses in the form of cheaper, cleaner energy. And in addition to the economic dividends from renewables, we will have far better health outcomes as we wean ourselves off coal- and gas-fired power.”
Dr Madeline Taylor, Climate Councillor, energy expert and Senior Lecturer at Macquarie University, School of Law said:
“The latest findings from the AER show that Australia’s reliance on volatile fossil fuels will have a significant impact on mounting cost of living pressure. This proves the two most important issues of the election – climate change and cost of living are deeply intertwined.
“We knew this was coming and it’s clear evidence of what we’ve been expecting here for a long time as a result of the inherent volatility of the oil and gas market. This coupled with geopolitical tensions has resulted in increased prices for all states across the National Electricity Market.”
“Consumers and manufacturers are now feeling the pinch from soaring fossil fuel prices. We need to double down on speed and support for renewable energy and storage to help protect ourselves, lower emissions, create new industries and become more self-sufficient.”