Power users face price hike over ‘ energy gap’

QUEENSLAND power bills would surge even higher unless more is done to replace the ageing Liddell power station in NSW, a report reveals.

The report warns that when Liddell closes in 2022, based on its owner AGL’s plans, there will be a gap in the energy market.

Queensland exports more energy than it uses so would be used to fill the gap, which would increase demand and put more pressure on prices.

The Australian Energy Market Operator report to be released today warns NSW would face major blackout events every three years if the gap was not filled.

It stated while AGL had fully committed to upgrade its Bayswater plant, this alone would not be enough.

Energy Minister Josh Frydenberg will today use the report to pressure the state and territory governments to sign up to the National Energy Guarantee, which he said would encourage investment in power stations.

“The existence of a major shortfall in dispatchable power following Liddell’s closure would clearly present an unacceptable situation undermining the stability of the system,” he said.