By Jo Nova
The The Australian Energy Market Commission (AEMC) has made up some fantasy figures suggesting a teensy weensy price rise is on the way in five years time unless we buy more unreliable generators, add more batteries and install giant high voltage lines. Somehow, miraculously, electricity prices will fall slightly in the next five years while we spend the hundreds of billions of dollars adding all that infrastructure. Sure.
The AEMC report feels like it was created to fill a very specific political advertising campaign. Don’t scare the horses with big price rises, but just scare them enough to justify us spending a kiloton of money on our crony renewable friends and Chinese pals, OK?
Households face sharp electricity price rise without urgent action, key agency warns
By Colin Packham, The Australian
Households could face a 13 per cent jump in electricity prices early next decade unless the rollouts of renewable energy, battery storage and transmission are accelerated, the country’s energy market rule maker has warned.
And if the “decline” in prices doesn’t happen, will the AEMC staff pay Victorians the difference from their own salaries, or is there no cost at all for them being completely bonkers wrong?
The Australian Energy Market Commission said it expected a decline in residential electricity prices between 2025 and 2030 if the transition proceeded along official estimates. But it warned that the transition depended on a “critical five-year window” in which the pace of renewable generation and battery deployment must keep ahead of rising demand and the retirement of ageing coal plants.
The AEMC sound more and more like a late night TV informercial. Buy our product to make energy cheap and if prices start to rise, buy even more.
[Ms Anna Collyer] said the analysis “clearly shows renewable energy and batteries drives prices down,” with the risk of rising prices emerging “if we slow down renewable deployment as coal plants retire”.
It’s time there were consequences for Blob Agencies.
Subsidies just hide the true cost
Mr Blackout Bowen, the Minister for Weather Control, knows the answer is to fool the people into buying more subsidized solar panels and batteries, because even though none of them are worth buying outright, when we all do it together the money disappears off some electricity bills and the real cost is hidden in a million consumer bills. The rebates on the solar panels are paid by raising the cost of electricity to everyone else. But that price never appears on any invoice.
Every time you buy frozen peas you pay more than you would have, so the supermarket, the farmer, and the factory can pay their higher electricity bills which subsided your solar panels. This is a dragon that eats its own tail at 50 hertz.
Mr Bowen lies from beginning to end:
After running coal plants into the ground and sabotaging them, he blames them for the price rises that happen when they are not there. Which industry is billing us for those high spikes in prices — it’s the battery men you love at $478 per MWh, not the coal plants!
“The AEMC makes clear [that] slowing the renewables rollout and sweating ageing, unreliable coal will drive up energy bills and pollution. Yet this is exactly what the Coalition’s anti-renewables plan is designed to do,” said Mr Bowen.
“It’s simple: when coal breaks down, your bills go up – that’s why we’ve got to keep rolling out reliable renewables, and help more households embrace solar and batteries,” he said.
“The Coalition’s anti-renewables plan will cost Australians more.”
Conversely, faster construction of renewables, grid batteries and transmission could ease pressure. The commission finds that “faster wind and transmission delivery could reduce prices by up to 10 per cent,” while a faster uptake of household batteries “can reduce electricity costs for all households by up to 3 per cent annually”.
Watch the poison pea — see how the word “average” disguises the theft:
Despite the projected increase in per-unit electricity prices, household electricity bills themselves may not rise. The AEMC notes that “average household electricity costs are projected to remain stable”, as improved energy efficiency and rooftop solar uptake more than offsets increased demand from gas switching and EV charging.
So the key question is who gets to pay the below average costs and who gets to pay the above average cost? It’s a stupid question — in Socialist-Paradise they both pay above average. There are no savings. Poor people pay more for rich people to put on economically inefficient solar panels, and the richer people pay more for solar panels no one needed when we ran a cheap coal fired grid. In a world of subsidies, we all lose!
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This post is dedicated to Max Hedt, ROM, a commenter we wish was still with us.
Known for some long but contemplative, big-picture, original, thoughts. (Sorry I don’t have time to find the best of 3,400!)