The Australian government announced on Thursday that rather than pursuing a clean energy target to reduce Australia's carbon emissions after 2020, it would set up a "National Energy Guarantee" to force energy companies to meet Australia's energy needs, while also attempting to meet our climate agreements on emissions levels.
Abandoning the clean energy target recommended by the government's own energy review, and ending subsidies for renewable energy from 2020, will contribute to households saving an average of $110-115 per year on power bills from 2020 to 2030, the government claims.
The "average" there is important, because as Sky News reported on Tuesday, in the early years of the program the saving will be as low as 50 cents per week, or about $25 per year.
Sky News understands relief from rising power bills under the govt’s plan could be just $25 a year in 2020. MORE:… https://t.co/pwngt1Bwf5
This equates to roughly one smashed avo on toast per year initially, priced at $22 by demographer Bernard Salt.
The Australian Competition and Consumer Commission (ACCC) reported yesterday that the average power bill was $1524 per year, up 30% on 2007-2008 levels. The ACCC said prices were placing "unacceptable pressure" on Australian consumers.
In a press conference on Tuesday, Turnbull said the year-on-year modelling would be released by the government before November. Chair of the energy regulator, Paula Conboy, said that it would also be looking at the network supply costs to ensure suppliers aren't overcharging customers.
Many people are already claiming credit for Turnbull — the man who once declared he would not lead a party that wasn't committed to action on climate change — suddenly changing his tune. Firstly, right wing party One Nation and its potentially soon-to-be-former-senator Malcolm Roberts.
"R.I.P. the RET" One Nation's Malcolm Roberts takes credit for demise of the Renewable Energy Target. #auspol… https://t.co/0i9UIywgi5
Then there is former Liberal turned Australian Conservatives senator Cory Bernardi, but he wasn't giving One Nation full credit.
"PM, ALP, Greens, Xenophon Team have effectively ruined our competitive advantage: affordable power" @corybernardi on @SkyNewsAust #auspol
Former prime minister Tony Abbott, fresh from his "climate change may be doing more good than bad" speech in London also welcomed the move.
Progress at today's party room. The Clean Energy Target has been definitively dropped.