More Ministers Quit; Treasury Officer’s Life
Last Friday’s Commentary suggested that the latest Coalition’s Newspoll of 47/53 for the third successive time indicated that the Morrison government was still in serious trouble. I suggested that the additional policy decisions announced by Morrison on climate policy would be unlikely to help close the gap. These measures included acceptance of the Paris agreement and an expanded use of renewable through the establishment of the very uneconomic Snowy2.0 and the usage of “big batteries”. Energy Minister Taylor also claimed the new measures would cut energy bills while lowering emissions but this failed to take account of the additional costs from using the Snowy or from back-ups needed when other renewable are not available. I noted that it seemed unlikely that the Energy Minister would be able to reduce electricity prices except through the adoption of a regulatory system which legally limited the maximum price able to be charged by retailers.
Some Puzzles About Energy & Climate Policies AND Turnbull
Today’s Australian reports that, at tomorrow’s meeting with his state counterparts, Energy Minister Josh Frydenberg will “press his state and territory counterparts to agree to 49 of the 50 recommendations contained in the blueprint for reform handed down by Chief Scientist Alan Finkel last month, arguing that they will inject ‘stability and security’ into the market”. He will also “demand that Victoria and the Northern Territory lift their bans on onshore gas development. However “the meeting will not consider the proposed Clean Energy Target (CET), which is a priority for some states and many in industry, because of Coalition divisions over the policy” (see Finkel Not on Agenda for Meeting with States).