No easing of power prices in short term: Bowen


Energy spending will not ease much in the short term as Australians prepare for an energy price hike on July 1, Energy Minister Chris Bowen admits.

When Mr Bowen acknowledged the imminent price increase, he said it would take time to implement the government’s plan for the transition to renewables and strengthen the energy network.

“It simply came to our notice then. I think people understand you don’t fix 10 years of negligence in 10 days, “he told Nine Network on Thursday.

“We need to build 10,000 miles of transmission wire to make our system work. You don’t do it in six months, you don’t do it in a year. “

Mr. Bowen also criticized the former government for postponing news of a power price hike to be held July 1 through after the election.

“The former government was focused on that before the election. It had to be released under the new government, news that energy bills were rising,” he said.

“The former government knew about it but did nothing to get the numbers before the election, surprise, surprise.”

Mr Bowen also said he was pushing for the introduction of the capacity mechanism, which will help boost energy supplies, starting in 2025.

“I would like it to happen sooner than that. I will work with the states and territories to try to make this case, I was clear about that,” he told the ABC.

“This is an important safety net.”

Liberals have criticized Labor for saying that Australian power prices would go down if elected.

Opposition leader Peter Dutton said earlier, “The sense of panic from Chris Bowen at the time was not there when the Coalition was in government.

“What’s going on with the economy right now – I mean it’s still on Labor.”

The suspension of trade in the national energy market decreased from Thursday morning, after the market operator indicated there would be sufficient capacity for home and business.

Following a “clear improvement” in energy conditions, the Australian energy market operator said it would begin a step-by-step process that would bring the market back to normal.

The system was destabilized last week, prompting AEMO to take control to stabilize power supply.

The energy market could start pricing again from 4am on Thursday.

The market operator intends to completely lift unprecedented trading suspensions after monitoring conditions for 24 hours.

AEMO chief executive Daniel Westerman said there would be a step-by-step approach to lifting the suspension. He said there has been a huge improvement in the market, with about 4000 megawatt generations returning to the power grid after outage.

“That means the risk of any deficit has been markedly reduced,” Mr Westerman said.

“We know many generators are working hard and closely with governments to improve confidence in their gas reserves, to ensure that they can operate at the level of production they want.”

The market operator said it hoped the system used to plan the power generation of the grid would operate without failure.

This was due to a low volume towards generators and a reduction in projected deficits in energy as electricity suppliers responded to market signals.

Australian Industry Group chief executive Innes Willox said the resumption of the national energy market was a sign of pressure relief in the sector.

However, he said the situation was far from normal.

“[This] is the first step on the road from hell to energy, and in purgatory, we could be here for a very long time, “he said.

“We are not back to normal and have no basis for relaxation.”


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No easing of power prices in short term: Bowen Source link No easing of power prices in short term: Bowen

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