A CARBON tax will not be re-imposed onto Australians according to Federal Energy & Emissions Minister Angus Taylor.
Mr Taylor said while he was keen to reduce emissions, he would not do so by imposing a cost onto the economy or households.
Addressing last week’s influential Northern Forum group, he said the federal government was focussed on outcomes.
LIGHTS ON
“Let’s focus on getting the price of energy to a reasonable level which is important for our industry, for our manufacturers for small businesses and our households,” he said on Wednesday.
“Let’s make sure we keep the lights on and we’ve seen some terrible instances in South Australia and Victoria, in particular in recent years, of not keeping the lights on.
“Let’s bring down emissions in a way that’s not going to impose costs on the economy, which is not going to be a carbon tax, which is not going to be an economic burden.”
Mr Taylor said the government had focussed “relentlessly” on cost, reliability and emissions outcomes rather than being caught up on a favourite fuel source.
“The truth is, to get to these outcomes, when you look at it market by market, State by State, ultimately you need a balance,” he said.
“No energy system ever works without some degree of balance – and maintaining that balance in the system is the crucial issue to get these outcomes.”
Mr Taylor said in the 12 months prior to COVID, Australia had seen a significant structural reduction in the price of energy.
“We’ve seen a halving of the wholesale gas price from $10 a GJ to about $5 – that’s now fallen through COVID to closer to $4.
“We’ve seen a halving of wholesale electricity prices from about $100 a MW/hour down to below $50.
“And they are related changes. Indeed the price of gas is now enormously important to the price of electricity.
LOSSES
“Having more gas come into the system, which we’ve been working on for some time, is now biting and making a difference.
“On top of that, the crucial thing we’re now seeing in both of these markets is more supply coming in without interruption from big losses of supply.”
Mr Taylor said it was crucial not to repeat the mistakes of South Australia and Victoria.
“What we saw in South Australia and Victoria in recent years was big losses of coal-fired generators without replacement – without a plan – they just went.
“So Hazelwood in Victoria was the biggest of them a few years back. A massive generator left the market with nothing to replace it, the wholesale price essentially doubled.
“Now, we’re not seeing that and we’ve been working very hard to make sure that doesn’t happen.
“If a coal generator has to go, because we do have ageing coal generators, there has to be a replacement and it has to be a like for like replacement.
Mr Taylor said the government’s big challenge was to ensure the wholesale price reductions were being passed through to customers.
“We’ve had a record number of consecutive quarter CPI price reductions in electricity, they’re accumulating over time.
“We’re seeing the same in gas.
“What that means, in practical terms, is that if you shop around now there are more good deals available.” PC
Yeah, such BS. So what do you call Matt Kean’s proposed renewables tax in NSW. A friendly donation to Mr Photios’s clients. You need to stand up to him Mr Taylor. You need to fight against him for us.