HOGSBACK

The poor will suffer as governments chase renewables dream

THE ongoing push by Australian governments to get households out of gas and switch to electricity while simultaneously closing coal-fired power stations is set to further hurt struggling low-income families.

 New South Wales had the highest average quarterly price of $137/MWh in the June quarter.

New South Wales had the highest average quarterly price of $137/MWh in the June quarter.

The promised investment surge in renewable energy to replace coal-fired power has not materialised to the required level and the net result is going to be higher power bills and grinding poverty for years.  

The latest update from Australian Energy Market Operator stated that the June quarter average wholesale power prices reached $108 per megawatt hour in the National Electricity Market which is 31% higher than the first quarter average of $83/MWh.

This is despite a glut of wind and solar power which kicked in during the daylight hours and sent prices into "negative".

Negative pricing refers to the practice of power generators paying to sell their output into the wholesale market.

This is cold comfort for low-income families in New South Wales who had the highest average quarterly price of $137/MWh in the June quarter.

A new joint report from the Brotherhood of St. Laurence and the Life Course Centre found there has been little research exploring the capacity of lower-income households to electrify their homes.

Report co-author Sangeetha Chandrashekeran said shifting households to renewable electricity from gas is becoming a government priority as the imperatives to decarbonise and improve energy affordability grow.

Enabling Electrification was launched this week by Victorian minister for energy and resources Lily D'Ambrosio as part of that state's Gas Substitution Roadmap.  Victoria is undertaking an ambitious energy transition of reaching 95% renewable energy generation by 2035 and net zero by 2045.

"Policy plans, such as Victoria's, can drive this shift [to renewable electricity]," Chandrashekeran said.

Report co-author Damian Sullivan said lower-income households are likely to be the last ones left on the gas network, paying more, unless further support is put in place.

This could mean more government subsidies which would mean more debt while governments such as that of Victoria grapple with out-of-control deficits.

"Renters face some of the biggest barriers. Even if they can afford to, they're often not allowed by their landlords to switch to electric appliances and many were afraid to even ask," Sullivan said.

While government ministers make pronouncements about their grandiose plans to reduce carbon emissions and decarbonise the economy without utilising coal-fired power as a 24-hour safety net, it seems the poor will continue to suffer more for years to come.   

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