Power bills set to soar almost $2000 over next decade
HOUSEHOLD power bills would soar almost $200 per year for a decade under federal Labor's plan for a 50 per cent renewable energy target by 2030.
That's according to modelling commissioned by the Climate Change Authority, which also showed almost all of Australia's 16 coal-fired power stations would have to close to meet the party's target.
It's the first indication of the costs of federal Labor's energy policy, and comes as the Turnbull Government urges state premiers to support its recently announced National Energy Guarantee.
The Australian reports the CCA modelling showed household energy bills would increase by $1921 over 10 years from 2020 to 2030 if an emissions intensity scheme was introduced that aimed to achieve a 52 per cent renewable energy target.
That's the closest model to Labor's target yet.
It showed the annual rise in electricity bills would start at about $100 a year in 2020 and peak at $285 a year in 2027.
The modelling, which was initially provided to the government in a briefing note on the Climate Change Authority's 2016 report on Policy Options for Australia's Electricity Supply Sector, also showed Australia would need to cut about 17,000 megawatts of black and brown coal-fired power generation out of the market by 2030.
According to The Australian that would mean closing all but one or two of Australia's coal-fired power plants.
Energy Minister Josh Frydenberg told the publication the CCA modelling exposed Labor's "hypocrisy" over energy policy.
He accused the party, which has yet to release modelling of its energy policy, of deliberately trying to hide the cost.
"The only reason why Labor hasn't modelled its emission intensity scheme is because it will drive up household bills by an average of almost $200 per year," Mr Frydenberg told The Australian.
"That's more than a $300-a-year difference to the Turnbull government's National Energy Guarantee, which will deliver affordable and reliable power.
"A family in Newcastle who are already paying $1500 a year for their power cannot afford a $200 increase in their bill.
"Labor has been calling for a bipartisan national policy based on expert advice.
"Now this is on the table this is a test of Bill Shorten's mettle.
"This is his chance to put aside the climate wars of the past."
Modelling for the Coalition's NEG shows it would likely cut average household power bills by up to $115 per year over a decade to 2030.
The federal government will put its NEG plan before state premiers at a Coalition of Australian Governments meeting next month.
Premiers must sign off on the plan for it to go ahead.
Ahead of the meeting, Business Council of Australia chief executive Jennifer Westacott yesterday sent letters to the premiers urging them to support the plan.