Pledge to cut power price is a bit shaky
ENERGY Minister Chris Bowen won’t guarantee Labor can still deliver its election promise of a $275 cut to power prices by 2025, after the electricity crisis drove wholesale prices through the roof.
The power bill cut was a major part of its Powering Australia policy taken to the election.
Just a month into government, Mr Bowen would not guarantee the full amount promised will be passed on to consumers in the wake of the crisis, saying “figures will move around”.
But he insisted that Labor’s policies for more renewable energy would still put “downward pressure” on prices.
“Our policies are even more important in light of what we’re dealing with,” Mr Bowen said at the National Press Club on Wednesday.
“In light of the fact that we have been dealing with this crisis … in light of the fact the default market offer has gone up after the election … all that makes our task harder.
“Renewables are the cheapest form of energy, so it is more (important) than ever to get them into the system. And they will achieve downward pressure on power prices.”
While short spikes in wholesale power prices are not passed on to consumers, sustained high prices are.
Power prices were already expected to rise 12.5 per cent prior to this month’s energy crisis, with Grattan Institute’s Tony Wood previously predicting the crisis will create “significant” price hikes this time next year.
Opposition energy spokesman Ted O’brien said it was clear Mr Bowen did not have a plan to deliver Labor’s pledge for lower power prices.