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You can find the current article at its original source at https://www.theguardian.com/australia-news/2018/jul/11/turnbull-pushes-back-on-coal-pressure-after-accc-report
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| Turnbull pushes back on coal pressure after ACCC report | Turnbull pushes back on coal pressure after ACCC report |
| (about 1 month later) | |
| Malcolm Turnbull has pushed back against pressure from the Nationals and some conservative Liberals to subsidise coal, arguing that backing one technology over another is a recipe for higher power prices. | Malcolm Turnbull has pushed back against pressure from the Nationals and some conservative Liberals to subsidise coal, arguing that backing one technology over another is a recipe for higher power prices. |
| Campaigning in Queensland after a new report from Australia’s Competition and Consumer Commission (ACCC) suggested Australia’s electricity market was broken, Turnbull said he was focused on the task of lowering energy prices for consumers. | Campaigning in Queensland after a new report from Australia’s Competition and Consumer Commission (ACCC) suggested Australia’s electricity market was broken, Turnbull said he was focused on the task of lowering energy prices for consumers. |
| “I recognise that there’s often debates about how you get there, and interesting debates about technologies, but the object of policy is to get prices low,” the prime minister told the Queensland Media Club. | “I recognise that there’s often debates about how you get there, and interesting debates about technologies, but the object of policy is to get prices low,” the prime minister told the Queensland Media Club. |
| “And the one thing we know is that government subsidising one technology or another, as [ACCC chairman] Rod Sims said today, is only going to result in higher prices. | “And the one thing we know is that government subsidising one technology or another, as [ACCC chairman] Rod Sims said today, is only going to result in higher prices. |
| “We want to be supporting lower prices. So that’s what it is all about.” | “We want to be supporting lower prices. So that’s what it is all about.” |
| Energy inquiry explainer: how ACCC plans to cut your power bills | Energy inquiry explainer: how ACCC plans to cut your power bills |
| Nationals have seized on one recommendation from the new ACCC report – that federal government underwrite new “firm” generation capacity to support new market entrants, and promote more competition – to claim that is a pathway to bankroll new coal development, which struggles to get finance. | Nationals have seized on one recommendation from the new ACCC report – that federal government underwrite new “firm” generation capacity to support new market entrants, and promote more competition – to claim that is a pathway to bankroll new coal development, which struggles to get finance. |
| Resources minister and Queensland National Matt Canavan, an avowed supporter of coal, took to social media to declare the “common sense of the Nationals is vindicated”. | Resources minister and Queensland National Matt Canavan, an avowed supporter of coal, took to social media to declare the “common sense of the Nationals is vindicated”. |
| In a joint media release on Wednesday afternoon, Nationals leader Michael McCormack and deputy leader Bridget McKenzie said the government’s approach would mean “coal can be part of the energy mix and Australians whose jobs, businesses and communities rely on it can have confidence”. | In a joint media release on Wednesday afternoon, Nationals leader Michael McCormack and deputy leader Bridget McKenzie said the government’s approach would mean “coal can be part of the energy mix and Australians whose jobs, businesses and communities rely on it can have confidence”. |
| Turnbull gave the ACCC recommendation tacit backing, noting the ACCC had made “a very interesting suggestion”. | Turnbull gave the ACCC recommendation tacit backing, noting the ACCC had made “a very interesting suggestion”. |
| But he also rebuffed the overt shirt-fronting from the Nationals, saying it was clear the recommendation did not favour any particular technology. | But he also rebuffed the overt shirt-fronting from the Nationals, saying it was clear the recommendation did not favour any particular technology. |
| The ACCC said in order to qualify for underwriting, projects must be “capable of providing a firm product so that it can meet the needs of commercial and industrial customers”. A number of energy projects would meet that definition, not just coal. | The ACCC said in order to qualify for underwriting, projects must be “capable of providing a firm product so that it can meet the needs of commercial and industrial customers”. A number of energy projects would meet that definition, not just coal. |
| The prime minister said the underwriting recommendation had “the distinct advantage of being thoroughly technology agnostic” and he said if adopted and designed well, it “should serve to support our goal of cheaper and reliable energy”. | The prime minister said the underwriting recommendation had “the distinct advantage of being thoroughly technology agnostic” and he said if adopted and designed well, it “should serve to support our goal of cheaper and reliable energy”. |
| Sims said on Wednesday the market should sort out what technology to favour, not governments, and that while proponents had raised gas and renewables projects to the ACCC over the course of its inquiries, “nobody has mentioned [coal] to us”. | Sims said on Wednesday the market should sort out what technology to favour, not governments, and that while proponents had raised gas and renewables projects to the ACCC over the course of its inquiries, “nobody has mentioned [coal] to us”. |
| The report released on Wednesday follows a comprehensive inquiry by the ACCC identifying the underlying drivers of high power prices in Australia. | The report released on Wednesday follows a comprehensive inquiry by the ACCC identifying the underlying drivers of high power prices in Australia. |
| The report finds that average residential power bills have increased by $426 in the decade to 2017-18, with the biggest causes being network costs (35%), wholesale electricity prices (22%), environmental policies (20%) and increased retail margins (16%). | The report finds that average residential power bills have increased by $426 in the decade to 2017-18, with the biggest causes being network costs (35%), wholesale electricity prices (22%), environmental policies (20%) and increased retail margins (16%). |
| Fancy seeing you: energy foes Abbott, Frydenberg and Credlin face off in US | Katharine Murphy | Fancy seeing you: energy foes Abbott, Frydenberg and Credlin face off in US | Katharine Murphy |
| The ACCC blamed loose regulation for gold-plating of electricity network assets because the regular was not able to stop “excess spending” and the limited merits review regime allowing networks to pass billions of dollars of costs onto consumers. | The ACCC blamed loose regulation for gold-plating of electricity network assets because the regular was not able to stop “excess spending” and the limited merits review regime allowing networks to pass billions of dollars of costs onto consumers. |
| It also blamed retailers for opaque discounts and early payment discounts that are “excessive and punitive” for other customers. | It also blamed retailers for opaque discounts and early payment discounts that are “excessive and punitive” for other customers. |
| It recommended that government-owned networks in Queensland, Tasmania and Essential Energy in NSW should write down the value of their assets. In NSW, where networks have been privatised, the government should pay consumers a rebate to “offset the impact of over-investment” in networks. | It recommended that government-owned networks in Queensland, Tasmania and Essential Energy in NSW should write down the value of their assets. In NSW, where networks have been privatised, the government should pay consumers a rebate to “offset the impact of over-investment” in networks. |
| The ACCC criticised the NSW government’s decision to sell two Macquarie Generation power plants to AGL and the Queensland government’s decision to consolidate three generation businesses into two. | The ACCC criticised the NSW government’s decision to sell two Macquarie Generation power plants to AGL and the Queensland government’s decision to consolidate three generation businesses into two. |
| The competition watchdog says federal and state governments should refund consumers for “excessive” electricity network costs. It calls for new measures to reduce market concentration and “market manipulation”. | The competition watchdog says federal and state governments should refund consumers for “excessive” electricity network costs. It calls for new measures to reduce market concentration and “market manipulation”. |
| The report said governments were responsible for “policy failures” over many years at all stages of the supply chain including selling or merging ownership of power plants, lax regulation to contain network costs and a lack of certainty on emissions reduction. | The report said governments were responsible for “policy failures” over many years at all stages of the supply chain including selling or merging ownership of power plants, lax regulation to contain network costs and a lack of certainty on emissions reduction. |
| It criticised “excessively generous” consumer subsidies for solar installations and also the effects of the renewable energy target which had “distorted investment” toward intermittent power sources “in a way that was indifferent to the ability to provide energy to the market when demand requires it”. | It criticised “excessively generous” consumer subsidies for solar installations and also the effects of the renewable energy target which had “distorted investment” toward intermittent power sources “in a way that was indifferent to the ability to provide energy to the market when demand requires it”. |
| The ACCC also backed the national energy guarantee as a mechanism to create policy certainty. | The ACCC also backed the national energy guarantee as a mechanism to create policy certainty. |
| The energy and environment minister Josh Frydenberg cautiously welcomed the report and its 56 recommendations, accepting its message that “the market is not working in the best interest of consumers”. | The energy and environment minister Josh Frydenberg cautiously welcomed the report and its 56 recommendations, accepting its message that “the market is not working in the best interest of consumers”. |
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| Australian Competition and Consumer Commission (ACCC) | Australian Competition and Consumer Commission (ACCC) |
| Australian politics | Australian politics |
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