The Labor party’s decision to pull out of talks on the future of the Renewable Energy Target will push up electricity prices, Senator Matthew Canavan said today.
“The Labor party obviously looks at its record in government of doubling electricity prices and says ‘A good start, but more to do!’ The RET already pushes up power prices by around $50 a year and that is set to increase by a lot more soon,” Senator Canavan said.
“The Coalition has proposed to avoid this by moving to a ‘true’ 20% target. Because electricity use has fallen since the target was set, the existing target of 41,000 gigawatt hours actually means we would end up with more like 27% renewable energy by 2020.
“Although, we will probably never get there. We are only about halfway to that target with just five years until 2020. To meet the target with wind power, we would need to build around 2,500 wind turbines which would cover an area the size of the ACT. That is not going to happen in five years.
“Instead, in just a couple of years, we will probably not have enough energy to meet the target. That will mean electricity producers will have to pay a renewable shortfall charge of $92 per megawatt hour, almost three times the current price.
“This will be a carbon tax by another name.
“Even in Opposition, the Labor party is finding a way to increase electricity prices.”