5 May 2023
Wholesale energy prices in NSW have jolted by 80 per cent following the closure of the Liddell Power Station, sparking fears of further hip pocket pain for Australian families and businesses as cooler weather prevails.
The average NSW wholesale electricity price soared from a low of $96.40 the week before Liddell’s closure to a whopping $172.89 in the days following – rising as high as $228.86 on May 1.
The spike in energy prices, which industry experts had predicted, coincided with 11 notices of a forecast lack of reserve generation capacity by the Australian Energy Market Operator signalling spiralling reliability concerns in the state.
This highlights the significant strain on the National Electricity Market following the withdrawal of the 2GW Liddell Power Station.
This is only set to worsen with 20GW of baseload energy generation being ripped out of the grid in coming years, with no credible plans for reliable replacement capacity put forward by the Albanese Government.
AEMO has warned of the growing likelihood of electricity blackouts in mainland states that have been heightened by further delays to Snowy 2.0 and the Kurri Kurri gas plant under Labor. When the Coalition left office, there was no forecast reliability gap.
Shadow Minister for Climate Change and Energy, Ted O’Brien said that Australian households and businesses are suffering the costs of the Albanese Labor Government’s energy crisis.
“Looking through Labor’s smokescreen we can plainly see that average wholesale electricity prices have already shot up by 80 per cent in the days following Liddell’s closure and reliability issues have spiked through the roof,” Mr O’Brien said.
“Labor has broken its promise to reduce energy prices by $275 and every Australian know their bills are set to skyrocket again by up to a third come July 1.”
“Australia’s energy market is crumbling in around the Labor Government yet it refuses to even acknowledge that there is a problem or that everyday Australians are doing it tough.”
“Labor must immediately reinstate a technology agnostic capacity mechanism, work with Origin to extend the life of Eraring, scrap its uncommercial green hydrogen plan for Kurri Kurri and ensure Snowy 2.0 is operational as soon as possible.”