The government’s electricity “reforms” merely confirm the existing subsidy arrangements for renewable electricity, with consumers paying the renewable tax till 2030.
Its “reliability guarantee” adds no greater certainty but will entail a vast new inflexible bureaucracy.
The measures will not result in the forecast lower prices.
Here is a piece of mine just published in Quadrant. In it I conclude
Josh Frydenberg must understand these deficiencies of the energy policy he is marketing. Presumably his nightmare is that unless the present situation is stabilised, the renewables share will be further boosted, and the economy ruined, by the high prices and diminished reliability this entails.
But in stabilising the renewable energy at its present and 2020 projected level we can be certain that Australia’s former comparative advantage in energy costs — the very same advantage present policies have destroyed — will not be restored and our living standards will be very much lower than they would otherwise be.