State’s power prices surge

POWER companies in Victoria are paying five times as much for electricity than they were just three years ago as they are forced to rely on other states to keep the lights on.

After the Hazelwood power station’s closure, Victoria is now taking more electricity from the rest of the country than it is exporting for the first time in the history of the national electricity market.

Victoria is also a net importer with South Australia — a state that has had some of the highest wholesale energy prices in the world in recent years.

The average wholesale price in Victoria, which makes up about a third of a power bill, has ballooned from $46.95 per megawatt hour in January 2016 to $250.33 in January this year.

Federal Energy Minister Angus Taylor said he feared Victoria would again face blackouts this summer.

“We have already seen outages last summer and the situation in Victoria threatens to again leave Victorians in the dark,” Mr Taylor said.

Victoria became a net importer of electricity for the first time in 2018-19, according to figures from the Australian Energy Market Operator

The news comes as two Victorian power stations — Loy Yang A in the Latrobe Valley and the Mortlake gas-fired power station in the state’s west — both have generators down.

Industry insiders have been concerned about Victoria’s ageing coal-fired power stations breaking down, amid fears the Yallourn plant could shut years earlier than expected as a result of Victoria’s renewable energy target.

Mr Taylor said the new data showed the “dire state” of Victoria’s energy market “thanks to the reckless policies” of the Andrews Government, including its target to increase the state’s renewables generation to 50 per cent by 2030. 1 A bird’s-eye view of the

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“Victoria has gone from being a net contributor to the national electricity market to sucking reliable energy from their neighbours,” he said.

“We are very concerned with the state of the Victorian energy market and the lack of meaningful action by the Victorian Government.”

State Energy Minister Lily D’Ambrosio said it was no secret the energy system needed a new supply of electricity to compensate for the closure of coal-fired power stations.

“We need to drive investment in renewables and bring new transmission infrastructure, storage and demand management online quickly, but the Federal Government’s policy chaos is simply causing too much uncertainty and undermining investor confidence in the energy sector,” she said.

Grattan Institute energy program leader Tony Wood said the main reasons for the higher wholesale prices were the closure of Hazelwood and the cost of gas.