Families’ $520 bill for green energy
VICTORIA’S ambitious new renewable energy targets will cost households up to $520 each, based on government estimates.
Consumers are likely to pay through an extra charge on electricity bills for up to 20 years, the Sunday Herald Sun has learned.
Energy Minister Lily D’Ambrosio said the impact of the Victorian Renewable Energy Target on households would be “modest” at “no more than 50 cents per week over the life of the scheme”.
She refused to release detailed modelling, citing current Cabinet confidentiality.
Sunday Herald Sun calculations show a 50c-a-week impost over two decades would slug households a total $520.
Based on current household numbers, that would amount to about $1.2 billion.
The Andrews Government wants 25 per cent of electricity generated in the state to come from renewable energy by 2020, and 40 per cent by 2025.
The planned massive change has triggered concerns among some in the power industry about potential electricity supply reliability problems and price volatility.
An auction scheme will be set up for companies to bid for long-term contracts.
It is intended that costs will flow through to consumers from 2020. The preliminary view was that recovering costs through distribution charges was best.
Federal Energy Minister Josh Frydenberg said the Andrews Government’s “diabolical” energy policies were hurting families and businesses.
Average Victorian household electricity customers already pay $80 a year for existing federal and state green schemes.
Under the latest Victorian renewable energy target, up to $9 billion will be spent on building wind and solar farms.
The government claims renewable energy generators will recoup most of that money by selling power into the grid.
The Sunday Herald Sun understands its confidential costbenefit analysis also assumes renewable energy will dampen wholesale costs, reducing household bills.