Industry aghast over Andrews’ ultimatum on NEG

VICTORIAN companies and Australia’s biggest manufacturers have banded together to urge Daniel Andrews to back the National Energy Guarantee, saying high power bills will remain and jobs will be lost unless he signs up to the plan.

The Premier is under fire for unveiling an 11th-hour list of demands for changes to the NEG, days before tomorrow’s pivotal meeting when states will be called on to sign up to the plan.

The last-minute demands, which were made for the first time this week after nine months of negotiation, come as new modelling shows Victorian companies would be some of the hardest hit in the country if Mr Andrews scuttles the plan.

The revolt also follows a campaign by activist groups, including Greenpeace and GetUp!, calling on Mr Andrews to derail the NEG.

Victoria Wool Processors Group general manager David Ritchie questioned why the Andrews Government revealed the new demands two days before tomorrow’s meeting. “My concern is this continual politicking of energy policy has been the single thing that has led to the high energy prices Australia is experiencing,” he said.

Chemistry Australia chief executive Samantha Read said delaying the decision on the NEG at tomorrow’s COAG meeting would result in higher power bills and lost jobs.

“The ongoing politicking around energy policy that is critical for this nation’s future, is dismaying,” Ms Read said.

A typical paper mill in Victoria would have its power bills slashed by almost $8.5 million a year under the NEG, government analysis shows.

The average Victorian plastic manufacturer would see its power bill cut by $240,000, while a hospital using 20,000 megawatts per hour would have its bill $330,000 a year.

It is predicted household power bills would fall by $550, of which $150 is due to the NEG and $400 due to new renewable energy coming on line.

The Andrews Government’s new demands include a push to amend the NEG’s emissions reduction target by regulation every three years, contradicting its own arguments when legislating its renewable energy target. reduced by