The Turnbull/Joyce Government will accept the recommendation of the Energy Security Board (ESB) for a new National Energy Guarantee to deliver more affordable and reliable electricity while meeting our international commitments.
Deputy Prime Minister and Member for New England, Barnaby Joyce, said under the Guarantee households and businesses across New England would have access to affordable and reliable power.
“The National Energy Guarantee will give certainty to investors and encourage investment in all forms of power,” Mr Joyce said.
“This means electricity bills will be lower than currently forecast and lower than they would have been under a Clean Energy Target.
“We understand that families and businesses are doing it tough and this Guarantee will provide cost-of-living relief.
“The National Energy Guarantee will lower electricity prices, make the system more reliable, encourage the right investment and reduce emissions without subsidies, taxes or trading schemes.”
The Guarantee is made up of two parts that will require energy retailers across the National Electricity Market to deliver reliable and lower emissions generation each year.
Unlike previous approaches, we are not picking winners, we are levelling the playing field. Coal, gas, hydro and biomass will be rewarded for their dispatchability while wind, solar and hydro will be recognised as lower emissions technologies but will no longer be subsidised.
Mr Joyce said the National Energy Guarantee built on the short and medium term plans already in place.
“The Guarantee builds on our existing energy policy which involves the retailers offering consumers a better deal, stopping the networks gaming the system, delivering more gas for Australians before it's shipped offshore and the commencement of Snowy Hydro 2.0 to stabilise the system,” Mr Joyce said.