September 22, 2017


Energy Policy is Getting Nowhere at All

Today’s Australian runs a front page story saying that “Australian households are paying 60 per cent more for their power than those in the US and double their Canadian counterparts”. But while Minister Frydenberg acknowledges that our power cost is “still too high”, he claims that most of the price hike occurred under Labor and that the Turnbull government is “taking unprecedented action to reduce pressure on …household bills “(see “Electricity Bills”). Short of subsidising electricity it is difficult however to envisage significant falls. Frydenberg has dug himself so deeply in the Turnbull camp that is difficult to see how he can get out. Readers of my Commentaries will be aware of the widespread scepticism about the various policy changes first being considered by Turnbull and then dropped or put on one side. As to falls in electricity bills, Frydenberg’s attempt to shift the blame on to Labor seemingly overlooks the recent large increases imposed by my retail supplier AGL and doubtless other similarly large retailers too.