PM announces his plan to slash power prices

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The Prime Minister is set to announce a $102 million plan to slash power prices and protect Australians from blackouts, with new technology that will connect the east coast power grids.

The plan will “deliver price relief for households and small businesses”, said energy minister Angus Taylor.

The federal government will join the New South Wales government to underwrite the first stage of the TransGrid upgrade to the transmission link between NSW and Queensland, reports Sydney Morning Herald.

An extra 190 megawatts would then be delivered during high demand periods, clearing bottlenecks in the energy grid system and lowering prices through increased competition.

The plan aims to deliver lower-cost retail power to the east coast of Australia, by improving wholesale power prices.

“This is about putting downward pressure on wholesale prices to make sure businesses and households have access to reliable and affordable power,” said Mr Morrison.

The Queensland-NSW Interconnector (QNI) initiative will start as soon as the deal is announced, before the Australian Energy Regulator signs off on the final stage.

“This is great news for the energy-intensive industries, and the jobs and regional economies that rely on them,” said Mr Taylor, who added that the QNI project would deliver “affordable, reliable energy” and facilitate “greater competition between generators in the electricity market, helping to reduce wholesale prices”.

The QNI interconnector will operate alongside the Victoria-NSW Interconnector (VNI), which will also be upgraded to “strengthen the backbone of the national electricity market, reduce network bottlenecks and make the energy market more efficient”.

The project aims to be fully operational by the summer of 2022-23.

What do you think of the government’s power plan?

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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?

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42 Comments

Total Comments: 42
  1. 0
    0

    Tinkering around the edges. What Australia needs is replacement power stations to replace those closed in the last 10 years. Coal fired power stations are cleaner than those of the last century and will give baseload power when the renewables are unable to cope. What annoys me is those people who want to close power stations in Australia as well as coal mines which will make very little difference to the planet but will kill Australia’s remaining manufacturing industries.

    India has 589 coal fired power stations, is building another 446, China has 2363 cola fired power station and is building another 1171. The climate change warriors in Australia want us to close the remaining 20 power stations to save the world. It is noted that Liddell is to close to be replaced with batteries and the CEO of Tomago Aluminium has said that a battery will keep his smelter operating for 8 minutes.

    • 0
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      More scaremongering from the Coal is king brigade, India has 117 coal powered power stations not 589, as usual with this sort of propaganda the writer is confusing the number of power units with the number of power stations, The now decommissioned Hazlewood power station had 8 units this is not 8 power stations, Why does Horace use these false arguments does he believe if you tell a lie enough times people will be sucked in? PLEASE BE HONEST AND FACTUAL IN YOUR POSTS you will still get payed.

    • 0
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      Thanks 80plus, it’s not my intention to champion coal, I don’t really care if it’s coal, gas, diesel or firewood that turns the turbines in a power station. All I ask is that the greenies and their followers don’t get enough control to stop everybody else getting reliable power for our homes, hospitals, factories and schools.

    • 0
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      Horace, I agree with your overall comments such as this announcement is “Tinkering around the edges.”, and also “..those people who want to close power stations in Australia as well as coal mines which will make very little difference to the planet but will kill Australia’s remaining manufacturing industries.” besides increasing cost and unreliability of power supply for all. Overall comment about the massive number of new coal fired power stations in China and India is also a major fact which needs to be understood by all as this totally defeats any actions to reduce emissions by other countries.

      The Morrison Govt is extremely tame and should have planned new coal, gas and uranium power stations to ensure base load power is adequate, reliable and cheap, instead of sitting on the fence. Instead of that, they are merely talking of linking up NSW to QLD and VIC – to ensure the black-outs are shared!!! They are also talking of adding a pathetic 190 MW of power supply whereas Liddell closure would remove around 1,600 MW from the capacity. Talk about over-selling a puppy!

  2. 0
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    Every measure by the government will be manipulated by power supply companies to continue to fleece its customers, especially due to the fact that the governments, state and federal, are notorious for creating legal loopholes on purpose or through outright incompetence.

  3. 0
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    Call me socialist, but I believe that some essential utilities, like water, power and transport infrastructure, must be government operated, just like police, defense, foreign affairs and education. I also think ambulance, medicine (incl dentistry) and fire/emergency should be fully govt operated. If the government can’t control essential services, they aren’t worth voting for.

    Some day you will be charged if the police are called. What if you can’t afford to call the fire brigade? If you can’t afford medical attention, will you die? We can’t live without power these days, but we are in the hands of profit makers who don’t care about YOU.

    Governments are for providing services, not to run businesses.

    • 0
      0

      I can see the reasoning in that and remember the good old public service icons like the Railway and the Post office.. Unfortunately what we have is the result of swinging from extreme right to extreme left and back again… so see what happens next.

    • 0
      0

      Spot on Janus, all those services needs to be govt controlled and delivered at the lowest price possible.

  4. 0
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    When I hear ‘slash prices’ and ‘price relief’, when it relates to power – I just sigh at the joke. Qld recently boasted about ‘power prices to be slashed by up to $100 a year’. Note the word ‘up to’. And the $100 was calculated on quarterly bills of around $1200. Hardly a benefit for the majority.

  5. 0
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    In other words they are doing nothing other than improve the grid which will have little, if any, effect on power prices.

    • 0
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      Certainly Dave R, the “gold-plating” of the poles and wires etc. that took place a few years ago and caused that big jump in prices, was ill considered, possibly involved corruption, and did no bloody good whatever.
      The new grid update however, as explained by the two states involved, is a different plan, – it includes extending the grid to areas where the cheap renewables can be connected and strengthening the whole grid so big movements of electricity can take place from where it is cheaper.
      This is also necessary to make up for those dying coal fired plants, the electricity from which is, by the way, much more expensive than renewables.
      The more the renewable energy sources are connected to the grid, the less reliant on the coal fired electricity we become, – Australia is a big country, there is always wind blowing somewhere, Solar is available 16 hours/day, and we haven’t even touched the tides yet.
      The real problem goes back to the Federal Govt. having had no plan for the future, and not wanting to even think about it, – you will notice that these upgrades are state initiatives, not the useless Federal Govt.
      Yes I know that Morrison is claiming credit, but in fact he has been stopping, not creating, new initiatives, – any progress in Australian electricity in recent years, (and there has been a lot) is despite Morrison and co. My feeling is, if you don’t want to help, at least get out of the way of those that do.
      For a government that has for many years interfered with the new developments, to now claim credit is to me ‘laughable,’ but I could use much stronger language.
      Anyway, a recent article, [email protected]

  6. 0
    0

    Farmers are not all on the east coast. This stinks. Now is when help is needed.

  7. 0
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    Reminds me of “ Nero fiddled while Rome burned “ . Best managers? Pathetic!

  8. 0
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    Well, whats the bloody plan….

  9. 0
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    Oh you are so right Janus they were the good old days of the 50s,60s and 70s. When Governments collected taxes to provide essential sevices to ther people. The governments still collect taxes but more and more sevices are being privatised, meaning the people are subjected to never ending price increases.And they call this progress.

  10. 0
    0

    So its the grid now at fault, not the methods of power generation. Must be the electricity companies best kept secret.. Now all the solar energy from Queensland can be sold to NSW and Victoria but how will this reduce prices?

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