PM confident of lowering power prices

by | June 24, 2022 03:30 | News

The prime minister remains confident energy prices will be able to be lowered following investment in new energy sources.

As the market operator still assesses when to end the suspension of national energy market, Anthony Albanese said he was optimistic the situation in the sector would start to improve.

“The problem at the moment is that renewables can’t fit into the grid and all of the new energy investment, that’s where it’s headed, towards renewables, because it’s the cheapest form,” he told the ABC’s 7.30 program.

“We need to get it right. I’m confident that we can, and in the medium term, start to see real improvements, start to see that lowering of energy prices.”

While the Australian Energy Market Operator began lifting parts of the suspension on Thursday, it said it was still evaluating how the market was functioning in the wake of the changes.

“AEMO continues to monitor and determine if it is appropriate to lift the market suspension,” the market operator said on social media late on Thursday.

The first stage of the lifting of the suspension was to let the market be able to set the price.

The energy operator indicated it would continue to monitor the situation in order to ensure problems with the sector that led to the suspension would not return at short notice.

The suspension of the national energy market was the first time such measures were enacted in the wake of the crisis gripping the sector.

Mr Albanese said the issues in the energy sector that led to the suspension were a result of the previous coalition government.

While the prime minister indicated there was no easy fix to the energy crisis, there were ways of setting up the sector for future success.

“The good news is that the path forward has been laid out,” he said.

“The Australian Energy Market Operator, with its integrated systems plan, outlined how you fix transmission.”

It comes as Energy Minister Chris Bowen said Australians would face an immediate rise in power prices from July 1.

Mr Bowen indicated the slight rise was due to it taking time to implement the new government’s transition to renewable energy.

He criticised the previous coalition government for delaying news about the hike in power prices until after the May election.

However, Opposition Leader Peter Dutton said issues that had been plaguing the energy sector had been exacerbated under the new Labor government.

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