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Coalition party room approves energy policy – politics live Coalition party room approves energy policy – politics live
(35 minutes later)
3.40am BST
03:40
Malcolm Turnbull and Josh Frydenberg have released a joint press statement:
The Turnbull 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.
As our energy system transitions, we must ensure households and businesses have access to affordable and reliable power.
The independent Energy Security Board advises the Guarantee will give certainty to investors and therefore encourage investment in all forms of power. This means electricity bills will be lower than currently forecast and lower than they would have been under a Clean Energy Target.
The Energy Security Board estimates typical household bills will fall by an average of $110-$115 per year over the 2020-2030 period.
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.
A reliability guarantee will be set to deliver the right level of dispatchable energy (from ready-to-use sources such as coal, gas, pumped hydro and batteries) needed in each state. It will be set by the Australian Energy Market Commission (AEMC) and Australian Energy Market Operator (AEMO).
An emissions guarantee will be set to contribute to Australia’s international commitments. The level of the guarantee will be determined by the Commonwealth and enforced by the Australian Energy Regulator (AER).
Past energy plans have subsidised some industries, punished others and slugged consumers. The Turnbull Government will take a different approach.
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. It is truly technology-neutral, offering a future for investment in whatever technology the market needs - solar, wind, coal, gas, batteries or pumped storage.
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.
Importantly, this plan builds on the Finkel Review, which recommended the creation of the ESB that has now recommended the National Energy Guarantee.
The Government will now work with the ESB and the states through COAG to implement the National Energy Guarantee.
As well as delivering a better deal for households, the plan will support business, particularly emissions intensive, trade exposed firms.
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.
We now have an opportunity to break from the climate wars of the past and forge a sensible, sustainable path forward.
3.32am BST
03:32
Just to take you inside the Coalition party room for a moment. That meeting this morning went for more than two hours and during that time, we are reliably assured that those who expressed contrary views to the government policy were, in no particular order:
Tony Abbott
George Christensen
Matt Canavan
David Gillespie
The Nationals MP Andrew Broad wasn’t exactly a contrarian, but he did float an alternative plan, which he’s spoken about previously and was knocked back.
Only Abbott didn’t want the decision made then and there, we have been told. The party room heard from energy officials who answered questions, and then Turnbull offered the room a chance to go out and dwell on it for a bit, telling them they could reconvene later this afternoon to decide, or even next week.
Abbott stood up to say the decision needed to be delayed, but he received no support, and the rest of room chose to have the matter settled, wanting it “sorted” so they could “move on”.
Where does it go now? Well, time will tell.
Turnbull has opened his official press conference on the policy. Details to come.
Updated
at 3.36am BST
3.25am BST
03:25
The Senate has started its business of the day. And what pressing issue received its precious time?
Energy? Housing policy? Health? Human rights?
If you had “how to pronounce Richard Di Natale’s name”, please take a bow and collect your prize at the door.
George Brandis says ‘senator Di Na-tar-lay’. Di Natale had the hide to have a different view on how to pronounce his own name.
I know Senator Brandis prides himself on his diction, but my name is Di Na-ta-lee, no Di Na-tar-lay so if you would like to refer to me by my proper name, I would be most appreciative.”
Brandis heard him and apologised.
I mean no offence Senator Di Nar-ta-lee, that it is the way I pronounce the English language, I am sorry if my pronunciation isn’t perfect. But in any event, Senator Di Na-tar-lay, what I can assure you is that when the [energy] announcement is made you will discover what has fallen from your lips in the last few minutes is completely wrong.”
Updated
at 3.37am BST
3.06am BST3.06am BST
03:0603:06
Katharine Murphy is receiving a briefing on the NEG. Here is a bit from what we know so farKatharine Murphy is receiving a briefing on the NEG. Here is a bit from what we know so far
On emissions reduction trajectory, govt says we can assume 26% on 2005 by 2030. Govt will have to legislate that target @AmyRemeikis #auspolOn emissions reduction trajectory, govt says we can assume 26% on 2005 by 2030. Govt will have to legislate that target @AmyRemeikis #auspol
The energy market regulators will work out the required emissions reduction trajectory year by year @AmyRemeikis #auspolThe energy market regulators will work out the required emissions reduction trajectory year by year @AmyRemeikis #auspol
The reliability obligation will be assessed state by state. Will be imposed within the national energy market rules @AmyRemeikis #auspolThe reliability obligation will be assessed state by state. Will be imposed within the national energy market rules @AmyRemeikis #auspol
3.03am BST3.03am BST
03:0303:03
Hastie also has a bit to say about the Australian Defence Force policy on gender reassignment surgery, in that they will fund it. The ADF have treated 27 cases of gender dysphoria over the past five years, at a cost of $1m. Hastie also has a bit to say about the Australian Defence Force policy on gender reassignment surgery, in that they will fund it. The ADF has treated 27 cases of gender dysphoria over the past five years, at a cost of $1m.
Marise Payne defended it in the Senate against attacks from Pauline Hanson yesterday.Marise Payne defended it in the Senate against attacks from Pauline Hanson yesterday.
Hastie, speaking to the Sky News, takes us on a trip down memory lane to 2005 when he was a third year cadet at ADFA and he was addressed by Rear Admiral James Goldrick, who told the room “some of you may have joined the Defence Force for your own reasons, but the bottom line is you are here to prepare to fight Australia’s wars and win those wars” and that has been his view. Hastie, speaking to Sky News, takes us on a trip down memory lane to 2005 when he was a third-year cadet at the Australian Defence Force Academy (ADFA) and he was addressed by Rear Admiral James Goldrick, who told the room “some of you may have joined the defence force for your own reasons, but the bottom line is you are here to prepare to fight Australia’s wars and win those wars” and that has been his view.
So if we accept that premise that the ADF exists to fight and win Australia’s wars, then we need a really good war fighting capability and we need to be selective with our personnel.” So if we accept that premise that the ADF exists to fight and win Australia’s wars, then we need a really good war-fighting capability and we need to be selective with our personnel.”
Hastie says the ADF is selective with its personnel and tells stories of “young Australians who wanted to join the ADF but have been denied.” Hastie tells stories of “young Australians who wanted to join the ADF but have been denied”.
One friend of mine who now farms north of Tamworth was denied because he had a rugby injury with his shoulder. I had another constituent very recently, who is a young tradesman, who had a very, very mild shellfish allergy and he was knocked back from Defence and then I had someone else, who is a national track athlete who has been in remission from cancer for sometime and he was knocked back and he was knocked back by Defence as well, because of their perceived on-going health costs. So, you know, we are selective and my view is, if you present with gender dysphoria then you absolutely need help, psychological help and counselling, but we need to be very, very judicious in how we spend taxpayers money and the bottom line, is, as I have said, is our war fighting capability. One friend of mine who now farms north of Tamworth was denied because he had a rugby injury with his shoulder. I had another constituent very recently, who is a young tradesman, who had a very, very mild shellfish allergy and he was knocked back from Defence and then I had someone else, who is a national track athlete who has been in remission from cancer for some time and he was knocked back and he was knocked back by Defence as well, because of their perceived ongoing health costs. So, you know, we are selective and my view is, if you present with gender dysphoria then you absolutely need help, psychological help and counselling, but we need to be very, very judicious in how we spend taxpayers’ money and the bottom line, is, as I have said, is our war-fighting capability.”
Updated
at 3.16am BST
2.49am BST2.49am BST
02:4902:49
Andrew Hastie has also been out and about on the sell.Andrew Hastie has also been out and about on the sell.
Basically, what we are doing is, we are going to bring a mechanism to bear on the market whereby energy retailers will be forced to buy coal, gas, for every megawatt hour of renewable energy they purchase. So we are moving incentives, the economic incentives away from exclusively the renewable sector and broadening them out and that will drive down prices, it will also make energy more reliable and affordable for Australian people.”Basically, what we are doing is, we are going to bring a mechanism to bear on the market whereby energy retailers will be forced to buy coal, gas, for every megawatt hour of renewable energy they purchase. So we are moving incentives, the economic incentives away from exclusively the renewable sector and broadening them out and that will drive down prices, it will also make energy more reliable and affordable for Australian people.”
2.31am BST2.31am BST
02:3102:31
You may remember the Greens leader Richard Di Natale has promised to stop the Queensland Adani mine by any means necessary, including standing in front of bulldozers, arrest threat be damned. You may remember the Greens leader, Richard Di Natale, has promised to stop the Queensland Adani mine by any means necessary, including standing in front of bulldozers, arrest threat be damned.
George Christensen, whose electorate relies heavily on mining jobs, had a different idea.George Christensen, whose electorate relies heavily on mining jobs, had a different idea.
George Christensen wants coal mine protestors (including @RichardDiNatale) to be charged with terrorism and serve 1+ yrs in prison. pic.twitter.com/cYH18kx3M9George Christensen wants coal mine protestors (including @RichardDiNatale) to be charged with terrorism and serve 1+ yrs in prison. pic.twitter.com/cYH18kx3M9
Updated
at 3.12am BST
2.20am BST2.20am BST
02:2002:20
The alert which went out with Malcolm Turnbull’s video named it the National Energy Guarantee. So it’s official. It’s the NEG The alert which went out with Malcolm Turnbull’s video named it the National Energy Guarantee. So it’s official. It’s the NEG.
The PM has announced a national energy guarantee to deliver affordable and reliable electricity. WATCH it here first https://t.co/TifMa8k111The PM has announced a national energy guarantee to deliver affordable and reliable electricity. WATCH it here first https://t.co/TifMa8k111
Updated
at 3.10am BST
2.14am BST2.14am BST
02:1402:14
Gareth HutchensGareth Hutchens
Labor caucus met this morning.Labor caucus met this morning.
It was the last full caucus meeting before the results of the same-sex marriage postal vote are announced.It was the last full caucus meeting before the results of the same-sex marriage postal vote are announced.
Given the timing, they resolved that in the event a yes vote prevails in the survey, Labor will push for the Turnbull government to pass Dean Smith’s private members’ bill as soon as possible.Given the timing, they resolved that in the event a yes vote prevails in the survey, Labor will push for the Turnbull government to pass Dean Smith’s private members’ bill as soon as possible.
They say Smith’s bill is consistent with the key recommendations of the unanimous Senate committee report, and believe it will strike an “acceptable compromise” between achieving marriage equality and protecting religious freedoms.They say Smith’s bill is consistent with the key recommendations of the unanimous Senate committee report, and believe it will strike an “acceptable compromise” between achieving marriage equality and protecting religious freedoms.
They also noted Labor’s position on the conscience vote on same-sex marriage (they will let party members vote as individuals) but said if a yes vote is returned they will push for Smith’s bill to be passed in its current form.They also noted Labor’s position on the conscience vote on same-sex marriage (they will let party members vote as individuals) but said if a yes vote is returned they will push for Smith’s bill to be passed in its current form.
UpdatedUpdated
at 3.09am BSTat 3.09am BST
2.14am BST2.14am BST
02:1402:14
Progress at today's party room. The Clean Energy Target has been definitively dropped.Progress at today's party room. The Clean Energy Target has been definitively dropped.
2.09am BST2.09am BST
02:0902:09
Someone came prepared. Just minutes after the party room sided with the energy policy, the prime minister’s office released a video on Facebook. It is all very uplifting. Affordability! Reliability! Security! All of the “itys”! Tellingly, the video does not say how much power bills will drop by, though.Someone came prepared. Just minutes after the party room sided with the energy policy, the prime minister’s office released a video on Facebook. It is all very uplifting. Affordability! Reliability! Security! All of the “itys”! Tellingly, the video does not say how much power bills will drop by, though.
UpdatedUpdated
at 3.06am BSTat 3.06am BST
2.02am BST
02:02
Katharine Murphy
A bit more detail about the NEG
I’ve happened across a briefing note prepared for the government by the Australian Energy Market Commission which gives more detail about the energy overhaul.
The briefing paper confirms two new obligations will be imposed on retailers “and the small number of large users of electricity who have registered as direct participants in the wholesale market”.
These obligations are for reliability support and emissions reduction. They would commence from 2020 and RET-financed projects would be grandfathered from that date.
The obligations would require wholesale ‘market customers’ to enter into contracts for sufficient generation to meet a specified component of their electricity load with dispatchable generation,” the briefing paper says. “Concurrently, they would also be required to meet their electricity requirements with generation resources that met a specified emissions reduction goal.
“This would mean that retailers would need to establish a portfolio of contracts or direct generation sources with existing and new dispatchable generation or verifiable demand response – to meet their reliability requirements – and with low emitting and renewables generation – to meet their emissions reduction obligations.
“This will address issues with the RET by incentivising investment not just in a specific type of capacity but instead in a range of technologies that can both lower emissions and be dispatched to meet system requirements.”
That’s all clear enough. The briefing paper argues electricity prices will come down for two reasons. It’s a lot more complicated than what I’m about to share, but let’s start with this observation.
As discussed above, a major contributor to the current relatively high wholesale prices has been the undermining of the contract market by the volume of capacity financed outside the national electricity market via the RET and, policy uncertainty with respect to the mechanism that will be used to achieve Australia’s emission reduction target.”
So the AEMC says prices will come down once the market knows what the carbon policy will be, and once the RET (which is a system which generates certificates) trends out of the system.
Now, to the emissions reduction obligation.
This sort of scheme could work in parallel with a separate emissions reduction obligation on retailers and large users,” the AEMC says. “In addition to a requirement to hedge their load, there would be a further requirement for that energy consumption to meet an emissions intensity target.
“This target would need to be derived for the electricity sector from the government-set emissions reduction goal. That target would then translate into an obligation for a particular generation emissions profile that would need to be achieved across the sector.
“The AEMC or Clean Energy Regulator could be tasked with translating the government’s goal into a sector-specific target. This obligation would work with the contract market in a similar way to the reliability obligation.
“Retailers would be required to meet their load obligations from generation with a particular emissions intensity – for example, below a historical average level. This would incentivise retailers and large users to contract with renewable or low emissions generators, balancing the need for dispatchable capacity with their emissions intensity.
“This would create additional incentives for investment in low emitting but firm generation capacity, allowing those generators, such as solar thermal, to attract a premium.”
I’m off to a briefing shortly.
As they say in the classics, more to come.
Updated
at 3.04am BST
1.59am BST
01:59
So now we wait to see the outcome of the Coalition signing off on the new energy policy. There have been some questions over whether or not it needs to be legislated. The short answer is, it doesn’t seem so, but we don’t have all the detail. If it is just a regulation change, they won’t need to put it through parliament. But we’ll know more very soon.
Updated
at 2.58am BST
1.44am BST
01:44
So the Neg is alive. (Every time I hear that term I just think of negging and wonder if anyone ever Googles these things before they name them and then I remember, no, they don’t.)
And James McGrath has left the Coalition party room early to appear on Sky with Laura Jayes, to say he can’t talk about party room.
Updated
at 2.57am BST
1.35am BST
01:35
The Coalition party room has approved the energy policy
Press conference to come
1.32am BST
01:32
Paul Karp
Pauline Hanson and Malcolm Roberts have held a media conference to claim credit for what they call a backdown in government policy.
“It’s RIP for the RET,” Roberts said, before mixing metaphors and warning renewable targets may be put “on steroids before being given the kiss of death”.
Roberts is worried that the $115 saving the government is claiming will occur may come after a further increase in prices. Roberts brandished a graph of energy prices increasing relative to inflation, labelled “Di Natale hockey stick”.
When asked if One Nation caused the government to move on renewables and drop the clean energy target, Hanson replied: “I do take credit for that, we’ve been very vocal on this from the very beginning.”
Roberts attacked proposals for demand management, which he summarised as “where the producer of the product pays people not to take its product – this is nuts”. “We’re seeing an energy market that is really an energy racket, the energy market is completely destroyed.”
Roberts said the government’s new policy was “an atrocious policy dressed up with lies around it”. When it was pointed out that One Nation was claiming credit for it, Roberts clarified “I took credit for the language” – perhaps a reference to his earlier claim that “coal” is no longer a dirty word.
When asked for their solution – Roberts said abolish all subsidies for renewables including the RET and to let the states take responsibility for their own energy needs, breaking apart the east coast electricity market.
“It will generate investment in the cheapest forms of energy, which is hydro and coal,” he said, before adding nuclear would also provide synchronous energy and One Nation was “open to considering it”.
Updated
at 2.09am BST
1.19am BST
01:19
In between the party room meetings, One Nation senator Malcolm Roberts has been spreading his gems of wisdom about the Coalition’s energy policy among the Canberra press gallery.
Despite his leader claiming the credit ...
Good to see the Gov plans to scrap RET & CET like One Nation has been suggesting. About time they joined us in the 21st century. -PH #auspol
... Roberts is not a fan.
Now they are not telling everyone that they are actually putting the RET on steroids before they give it the kiss of death. So we are going to have an increase in power prices even more dramatic than we were expecting and then they are going to kill it off. So the government tells us they are going to cut power prices by $115 a year. What they are not telling us is how much power prices will increase until that occurs. So we will see $115 less than what it will be. But what it will be is frightening.”
It must have looked good when he practised it in the mirror, so Roberts then presents a letter from Malcolm Turnbull, which was written after he sent him “a copy of the Moran report, which was a critique of the Finkel report”. You may have missed the Moran report, but don’t worry, it was published on this climate sceptics blog.
The Finkel report is a highly destructive blueprint for this country and the Moran report tears it to shreds, absolutely destroys it. The Finkel report is based on lies. And the Turnbull government is now continuing to tells lies about climate and it raises more questions, how the hell are they are going to comply with the Paris accord without renewables, so what are they going to do? They need to come clean, we have got three words into the vocabulary of this country. We have affordability into the energy debate, due to our work, reliability into the energy debate due to our work, we have security into the energy debate, due to our work and we’re going to introduce a fourth word – truth. Because I have been pursuing the CSIRO for the last 12 months and they have not got what they claim they had. And I’ll be talking more about that in the next few weeks.”
So there you have it. The master of empirical evidence, who apparently couldn’t work out an email address, or fully understand his citizenship history has the climate debate sorted. Obviously there is no need to continue with this today, we can all go home.
Updated
at 2.02am BST
1.06am BST
01:06
The Greens have completed their party room meeting and it went as you would expect.
The party room is not a fan of the energy policy, (shocking, I know), so it will be looking to Coag and the states to tell the government to go jump and go it alone when it comes to renewables.
They want to suspend standing orders in the Senate and call for a debate of the energy policy and hope Labor will join them.
As for other issues, the Greens are standing against the government’s housing affordability plan, which would allow homebuyers to dip into their super and reminded everyone the government has until close of business tomorrow to bring its citizenship changes – the ones which include the stricter English language test etc – up for debate.
Updated
at 1.57am BST
12.56am BST
00:56
The Labor party is pleased the government went with James Shipton for the head of Asic and not John O’Sullivan.
Chris Bowen said Shipton has their support as well.
I want to congratulate and welcome the appointment of James Shipton as the new chair of Asic. This is an appropriate appointment. Mr Shipton has a good mix of corporate experience and regulatory experience. His experience as a regulator in Hong Kong will come in as an asset for him in his role in the new chair of Asic. As well, he’s been a thought leader when it comes to regulation in academia in the last few years, and of course, he’ll draw on his corporate experience. This is an appropriate and good appointment which Labor welcomes. The chair of Asic is an important position. It is appropriate that it receives bipartisan support. I give that bipartisan support to Mr Shipton and wish him well in his stewardship of Asic and look forward to working with him in the future.”
As for O’Sullivan, Bowen read from an email (from Godwin Grech to O’Sullivan) he once sent.
“RE fees – what I have in mind is that once Rudd and his hacks sign off on Ford Credit – you and I can change the contract to reflect your preferred fee arrangement and push that through quickly next week. I will not be running it past Henry – that is Ken Henry, secretary of Treasury – and co. Godwin.”
That was at 10.02am on the 19th of March 2009. At 10.24am on the same day Mr O’Sullivan replied “Thanks Godwin, sounds sensible.”
Updated
at 1.28am BST
12.40am BST
00:40
“Optimism” is one of the words a couple of Coalition sources have used in relation to the party room briefing.
Then there is also this:
Abbott In Emissions Reduction Non-shock Shock #auspol https://t.co/HzhQvol85m
Updated
at 12.51am BST
12.21am BST
00:21
Things appear to be going well in the Coalition party room ...
Energy Minister @JoshFrydenberg has been applauded by party room as he explained the Govt energy plan @SkyNewsAust
Updated
at 12.51am BST