The Government unveils its new National Energy Guarantee

Font Size:

Malcolm Turnbull has revealed his government’s rebuttal to the Finkel Report, unveiling a new energy policy which dumps the current CET (Clean Energy Target) in favour of supporting fossil fuels.

The new National Energy Guarantee – or NEG – is the new acronym on the block, which the Government claims will guarantee better supply and lower emissions.

And it hopes to lower prices for power, although no one can exactly say how much it will save you.

The Government also says it will reduce emissions enough to uphold our end of the Paris climate change agreement. The new deal effectively ends subsidies and incentives for renewables, instead relying on retailers to make good on supplying power that meets Australia’s efficiency and emissions obligations. They are required to use a percentage of electricity from sources such as coal and gas, batteries or pumped hydro.

The PM has also pitched that the NEG would supply “cheaper, more reliable electricity for Australian families and businesses”.

“Your power bills are too high and rising too fast,” he said.

The Government claims that, from 2020, a typical household could save an average of $110 and $115 each year for a decade.

However, the head of the Energy Market Commission, John Pierce, who was part of the Energy Security Board that costed the NEG for the Government, reiterated that the figure was an average over the decade, hinting that savings would be much lower in the early years.

He told Sky News those savings could initially be as low as $25 a year.

One thing the NEG does ‘guarantee’ is reliable supply.

The Government believes it will get its plan through without federal legislation, but it will need to be signed off by the states and territories. He already has the backing of energy retailers.

The Opposition called Malcolm Turnbull’s plan a capitulation to former PM Tony Abbott’s energy philosophy.

What do you think of the NEG? Would you like more of a guarantee on what you’ll pay for power? Is a saving of $25 a year enough to warrant scrapping incentives for clean power?

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

Hospitals and households being rocked by power bill shock

Health care facilities join households as victims of power bill increases.

Aussies want power prices regulated, Government not listening

A new poll shows a clear majority of Australians want energy prices regulated.

Energy companies gouging consumers

The electricity component of your latest bill made up just 11 per cent of what you paid.

Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

Contact:
LinkedIn
Email

68 Comments

Total Comments: 68
  1. 0
    0

    All Smoke & Mirrors. By 2020 at the current rate of price increases the average power bill will be up by more than $400/year.

  2. 0
    0

    What a load of rubbish again from trumball this guy is an idiot does he really think he can feed us this BS and we believe it cannot wait for the next election where smart voters axe this bunch of DH what the hell has this country come to

    • 0
      0

      By that do you mean the same smart voters who put Gillard and Rudd in before and put us all into the shit we are in now with their crazy renewables policies.

    • 0
      0

      arbee, renewables is what we should be doing and prioritising that for our grandchildren and future generations. Ignorance about the environment or living in the present with no regard for the future is selfish and just plain wrong!

    • 0
      0

      The main reason we are in such a mess is that when we privatised the electricity market we effectively gave the companies control of prices and allowed them to rip us off by gold plating the poles and wires and then charge us for the privilege. Yes renewables have been subsidised, but so has coal etc. except that it is not fashionable to talk about the subsidies to fossil fuels.

    • 0
      0

      Well Marto
      who are you going to replace them with? Bill Shorten the person not much better or different Kathy Jackson , and her mate Lawler? Or are we going to vote for the half wit Di Natale?
      What I don’t understand is why we have a problem at all with the way the world is going about changing to renewable energy from fossil fuels.
      In the interim we have to have the best clean coal and the best way to use it as clean as we can ,while we do the changing to renewables.

      Renewable energy will not take over the world in 5 minutes it will take 50 to 100 years, to be done properly and for people in the mean time to have as cheap a energy cost as we can. If we don’t do it in the proper way , and keep being over thE top paranoid about climate change or global warming , we will wind up with the flow on of expensive energy supply to business right into out own pockets and then you will see turmoil, unlike you ‘ve ever seen before.
      All goods and services will sky rocket in price. While sensible cheap usage of coal will hold the planet steady until we can totally have the whole world using renewable energy, safely and cheaply. I am no mad right wing fossil fuel promoter , I am no Turnbull supporter , but I won’t vote for the ALP while rotten Bill Shorten is the leader, he is an empty man. And he won’t save your bacon either with his energy arguments.
      This needs to be done in partnership with every party and government in the country, because if the politics of this climate stuff keep intruding on the forward movement for energy then I AM BEGINNING TO BELIEVE THAT THIS WHOLE CLIMATE AND POWER ARGUMENT IS A MANIPULATED PILE OF POLITICAL BULLSHIT. Excuse my French.

    • 0
      0

      To Grandma Kathleen, the world is, going about looking to the future for our grandchildren and great grand children.
      But it doesn’t happen instantly . It will take compromise from all sides to use coal and use it to keep prices at a sustainable level for all of us, while renewables are developed so when the time comes the whole planet will be using wind and sun and ocean power, wave power, water power.
      Once again I fail to see the problem, you can take the political nonsense out of this whole climate argument , we don’t need it. Climate change true or false, doesn’t matter , common sense tells you that if you want to change to renewables and do it properly , then it takes time , but if you rush and it costs much too much money then you have a horrible horrible social outcome for your grand children. Let me tell you , you will not know the world if that happens and people have no jobs no money , and costs soaring high, then renewables or not we will be leaving a hell hole to our descendants .
      Climate changing won’t mean a thing, we may be better off gone , if that happens. So if we are polluting the world then lets get together and clean up. But don’t argue about what we can’t do anything about and get to work doing what we can, but not by cutting our own throats in the mean time.

    • 0
      0

      Why wouldn’t the Libs expect you to believe their BS, as hard as you might find it to believe there are some people out there that actually believe Bill Shorten’s BS I know it sounds impossible but it’s true.

    • 0
      0

      Remember what our chief scientist said when asked what impact there would be on the atmosphere if Australia totally eliminated production of all greenhouse gases. His answer was that it would be negligible, so why are we suffering the highest power prices in the world when we could have the lowest prices?
      Why can’t we have nuclear power stations? Unlike Japan we could locate them so far from the sea that the risk of damage from a tsunami would be nil.
      Where is the logic in refusing to burn coal in Australia, but allowing coal produced here to be burnt overseas?
      We are committing industrial suicide for no logical reason.

  3. 0
    0

    I’m waiting for more of the abuse that marto deals out. If he has any better ideas why not present them. And if he thinks that Shorten and the Labor Party would do better then he is really away with the Fairies. The long and the short of it is that Renewables are expensive and you pay for it with enormous subsidies, so if you want to save the planet put up with it. But you can’t have your cake and eat it too.

    • 0
      0

      Oldie 84, things have changed since you were told that Renewables are more expensive, now they are cheaper, look at the Dynamics.
      Solar panels are now mass produced on a massive scale, 10 years ago they were $10;/watt, now you complain if they are more than 50 cents/watt, Wind Turbines, when they were as big as 1 million watts each cost 1 million dollars, $1;/watt, coal fired power costed to build $1.10/watt, but then you have to throw coal at it every day for the entire life of that coal fired generator, and maintenance is high, whereas wind has negligible maintenance.
      Subsidies for either are about the same.
      Now, we are building 8 megawatt (8 million watts) wind turbines, the price has come down about 36% in the last three years, but that is not the main consideration, the greater size has two big results, – in those days, wind turbines had say a 60 metre tower, 50 metre blades, now they are 120/160 metre tower, – each 1 metre in height increases the power 1%, compounded; Blades are 80 metres long, each 10% increase in swept area doubles the power, a 2 megawatt turbine produces much more than 2 of 1 megawatt turbines, an 8 megawatt wind turbine produces more than 4 times a 4 megawatt turbine, the price just keeps plummeting, and the wind, and the sun, are free, and will stay free, and in fact the wind, because of global warming, has more energy so is speeding up, with only wind turbines to slow it down..
      If you think about it, and do some research to check my figures, you will never say again that renewables are more expensive than coal or nuclear, nor repect anyone else who says that, as you know they are ‘off with the fairies’, and if Bill Shorten promotes renewables, then logically he is the one to vote for.
      fyi, http://www.power-technology.com/features/featurethe-worlds-biggest-wind-turbines-4154395/

    • 0
      0

      Lookfar, you are quoting statistics which are undoubtedly correct, but why is power still so expensive ? Like all Statistics they only tell half the story. If you are correct I wait for subsidies to cease and that alone should reduce my powerbill no end.

    • 0
      0

      Lookfar, I am not going to try and question your figures in your comments, but I will question one aspect and that is that renewables are cheaper, I have been watching question time today, and even the labor party are not saying that renewables are cheaper at the moment, although they have made the claim that renewables maybe cheaper at some time, they have come up with no evidence to say that renewables are cheaper, in fact quite the opposite admitting that renewables will still need subsidies to the tune of $66 billion, which even the most die hard labor supporter would have to suspect that the cost would come from the tax payer, the labor party are not denying this figure. So I would have to agree with you if you want higher energy prices vote for Bill Shorten and the greens, that way we can once again have open borders as well.

    • 0
      0

      How do you feel about the government subsidizing a coal mining company to the tune of $1 billion Oldie84?

    • 0
      0

      I have installed a 3.5KW Solar System and have reduced my power bill from $600 per Quarter to under $50. The system will pay for itself in under 4 years. The Internal Rate of Return is 18%. When Battery costs reduce by 30% I will install a 2KWH system and go off grid.
      Renewable’s are cheaper but will not replace coal in the near term because of the high power demand of industry, but, for domestic use it’s a no brainer.

    • 0
      0

      R.K, I have done much the same, we have received a rebate every quarter for the last 5 years. No reason why each house can’t become it’s own power generator. If industry wants to burn coal, they can pay for it.

    • 0
      0

      Spot on Ex PS, every new house should be required to have Solar installed if the design and location is suitable. NSW mandates the installation of rain water tanks why not Solar?

    • 0
      0

      Spot on Ex PS, every new house should be required to have Solar installed if the design and location is suitable. NSW mandates the installation of rain water tanks why not Solar?

  4. 0
    0

    we really should pay tony Abbott $25 so that he can lead the country again to his greater glory. after all we voted him as leader and he is such a statesman we need to reward him for his fine efforts to impose his will on the government and people. He knows what is best for us and will need us to top up his poor backbencher’s salary when he should really run the country as well as he did last time.

  5. 0
    0

    This is very much a political ploy to protect the LNP from further turmoil.
    The coalition are great at spouting the power of the “market” to drive the economy and the “market” in this case is moving away from fossil fuels, coal and gas atho’ gas is generally considered to be more acceptable as it is cleaner.
    The in-fighting in the Liberal party is resulting in decisions being made that are NOT in the best interests of Australia.
    The claim of cheaper electricity seems to be one of those “back of the envelope” calculations. If the government was to provide their own personal guarantees that they will give up say 10 percent of their pensions for each dollar their estimate in the reduction of electricity costs fails to reach then we might believe them. Until then all they are promising is pie in the sky. Their track record on promises is not comforting.

    • 0
      0

      Yep Tom Tank and we believed their rubbish that the NBN FTN was going to be a big advantage over fibre and cost effective look at us now.

      The scrapping of labors Carbon tax was going to bring prices down. It did momentarily but where are we now?

  6. 0
    0

    Turnbull is owned by the far right in his party unfortunately. He, himself, believes in renewables but is unable to be his own man. It will cost him the next election.

    • 0
      0

      Turnbull instead of Bernardi should have left and formed his own party , without the half brains running along beside Abbott, and without having to turn himself over to the crooks Bill Shorten runs or and that serious fool DiNatali, Turnbull could have been a really good central party, the Libs are too far one way right, and Labor have some donkeys, too far to the left, fools inside them as well as crooked union boss’, and Di Natali is simply stupid, blind tunnel visioned Green individual. Too much idealism and no sensible thinking.

    • 0
      0

      Shorten is not owned by the left, he is the left and extreme at that, when labor come into power at the next election with the assistance of the looney greens we will really have something to worry about, the energy prices will continue to rise, part of the reason was that when the electricity was owned by the state it was ran into the ground, very little maintenance was carried out over many years, in that time we had both major parties in power and both neglected the infrastructure, so anyone who thinks that the next government that gets in will do any better are dreaming. The choices we have are an extreme left wing supported by the looney’s, and a centralist PM dominated by the right wing.

    • 0
      0

      DIM I am afraid you have your facts wrong. I had an involvement with the SEC in Victoria and maintenance was carried our religiously and rigorously.
      The SEC existed to generate and supply electrical power to Victorians but now all the private companies exist to generate and supply profit to their overseas owners.
      The average Australian in fact would not know a far left politician if they fell over one. The ALP has a couple but they are in a minority and if anything the ALP is currently more middle of the road. They seem left wing because the Libs, under Howard and Abbott, have moved so far to the right.

    • 0
      0

      No tomtank you are the one who has the facts wrong, firstly regarding the maintenance of the electrical infrastructure here in NSW it’s well known that over the years the infrastructure has been allowed to become run down and the huge profits from electricity has been used by different governments to prop up their failed policies in other areas talk about killing the golden goose. I don’t know what your state was like so I can’t make a comment on it. What I can make a comment on is Bill Shorten who I have had dealings with and I reiterate that the man is an absolute left winger, but I don’t have a problem with that aspect of the man, each to their own, what I do know about the man is that he is the most disingenuous leader of the labor party in living history and the worst union leader I have ever had anything to do with, I say that as a proud Union member of almost 50 years.

  7. 0
    0

    His plan has a glaring weakness, it relies on the companies that gave us ‘Gold plated’ poles and wires that is one of the main reasons that prices have soared, to drive prices down, Why would they when they benefit from high prices?

  8. 0
    0

    I don’t think they know what they are talking about. They say coal, gas, batteries or pumped hydro is acceptable.

    Its a little more than obvious, they way they avoid using the term “renewable energy.” They don’t want to sound like labor or anything like that. Labor has got it all wrong so they must have it all right.

    Lets stop playing word games. Hydro is the classic renewable energy, its been around for decades in the Snowy mountains and in Tasmania and other smaller projects.

    When it comes to pumped hydro, then solar and wind power are ideal energy sources for doing the pumping to the water reservoir, it can be done during the day when the sun is bright, or when the wind is blowing.

    Then there’s battery power from huge storage batteries, perfect for storing renewable energy from solar and wind. Unlike coal you don’t have to mine it, transport it, or feed it into a boiler and steam turbine.

    Shhh its a secret, the liberals want to use renewable energy too, but they have to call it coal power, or they will look like they are doing it to combat climate change.

    As for household savings lets talk about an amount that people can use, like $500 a year.

    • 0
      0

      What? The batteries just appear from nowhere? The rare minerals have to be mined, transported, refined; the other components have to be mined refined then assembled and transported, all at great cost.
      This is like the great scam when the compact fluorescent light bulbs were mandated. The old bulbs cost cents to make and could be recycled. The new bulbs cost so much to make, are full of toxic chemicals, and cannot be easily recycled. What a rip-off.

    • 0
      0

      … still waiting for my $600 that Tony promised…. tall drink of water that he is….

    • 0
      0

      What kind of greenie calls themselves a greenie and knows nothing about it.
      There is a company by the name of Tesla presently marketing large storage batteries. There is on 14 kilowatt battery for the home called a power wall. Look it up on the internet.
      The same company has a contract to supply large storage batteries to the South Australian grid system for peak loading

  9. 0
    0

    Is everyone getting completely fed up with this Government’s rip off schemes aimed at getting votes and short term fixes?

    Where are the real leaders who will put people first?

    • 0
      0

      Brian, They died off with Whitlam and we’re replaced by people like Hawke, Howard, Abbott, Turnbull and Shorten. Professional politicans who think of nothing other than their own pockets and their big business partners.

      Vote for me at the next election (as the benevolent dictator) and I will show you the way back to honest Government.

  10. 0
    0

    Hey guys I love your photo……….Now can you make that happen for real!!!

Load More Comments

FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Health news

Doctors call for convicted child killer Kathleen Folbigg's release

A group of 90 expert scientists and doctors is calling for convicted child killer Kathleen Folbigg to be pardoned in...

Lifestyle

Adorable celebrity pets

Just like the rest of us, Hollywood's A-listers are pretty obsessed with their pets, especially when it comes to sharing...

Health news

Who needs a colonoscopy most? Ensuring those at risk head the queue

Professor Jon Emery Mary was 55 when she started having on and off tummy pains, and noticed she needed to...

Health & Ageing

What stress does to your skin, hair and nails

Stress can be an all-consuming beast. Not only does it overwhelm your brain, but it can have a physical impact,...

Property

Multi-generational family living grows, forcing design changes

The trend towards multi-generational living, accelerated by the COVID-19 pandemic, is producing fresh approaches to Australian housing. Urban designer Craig...

Seniors Finance

Your retirement 'pay cheque'

Nothing beats the reassurance of knowing there's money coming in each month. Then retirement happens and, suddenly, it's up to...

Health news

Scientists closer to developing a vaccine for urinary tract infections

Anyone who has ever developed a urinary tract infection (UTI) knows that it can be painful, pesky and persistent, but...

News

Alarming spike in elder abuse during pandemic

A frightening rise in elder abuse during the pandemic is being reported across Australia. And some of the perpetrators are...

LOADING MORE ARTICLE...