Interview with Stephen Cenatiempo

Transcripts

TED O’BRIEN – SHADOW MINISTER FOR CLIMATE CHANGE AND ENERGY  

FEDERAL MEMBER FOR FAIRFAX  

TRANSCRIPT 

INTERVIEW WITH STEPHEN CENATIEMPO, 2CC RADIO 

19 August 2024 

Topics: Energy bills

Stephen Cenatiempo

We’re constantly told that renewable energy is the cheapest form of energy, and we’re told by the Federal Government that they’re putting downward pressure on our energy prices, despite the fact that our bills seem to tell us otherwise.

Here in the ACT we continue along merrily with the myth that we operate on 100% renewable energy, and every time we speak to a government politician on this program, they tell us, how wonderful is it that our electricity bills are going down. But it only apparently happens at their houses. Well, according to an annual analysis by St Vincent De Paul Society, there’s been a big jump in energy bills over the past year because of the switch to greener energy sources. Calculated that the annual bill for households on actual AGL’s regulated rate has typically increased by $350 or 13% since July last year. I just find that absolutely extraordinary. And I look at my, you know, I’ve only been here four and a half years, and my energy and I pay my electricity bill fortnightly, and it’s gone from $48 when I first got here to now, $79 a fortnight in four years. Yeah, 100% renewables.

Ted O’Brien is the Shadow Energy Minister and joins us now. Ted, good morning.

Ted O’Brien

Good morning, Stephen.

Stephen Cenatiempo

Renewable energy is the cheapest form, isn’t it?

Ted O’Brien

Well, that’s what Labor says. But I think we all know, because our bills tell us the opposite, as you just said.

Stephen, the report to which you referred, as you said, came out from St Vincent de Paul. St Vinnies they’re on the front line when it comes to knowing how tough people do it. When I talk to St Vinnies, even in my own electorate, they explain to me how much families are just really struggling, seniors are struggling and people aren’t turning on their heaters at night.

Another report came out, also the beginning of last week, that said 49% of Australians have gone cold this winter due to the fear of higher electricity bills. They don’t want to turn on their heaters because the bills just keep rising.

It’s an absolute farce that we can put all our eggs in one basket with a renewables only approach and think the prices will come down. That’s never been the experience overseas anywhere, and Labor continues to roll out this line, despite the fact it is hurting Australians on the ground.

Stephen Cenatiempo

Ted, the problem I see here is that the analysis by Vinnies Chief Energy Analyst says that the rise was partly due to pay for the switch from coal and gas to solar and wind, which, you know, I mean, that’s, that’s a one.. well, I won’t say a one off, but it’s it’s only part of the problem here. But moving forward, I mean, we don’t have enough supply in our grid, and if you’re getting it from non-renewable sources, that is going to take time, whatever that source is, whether it’s new coal fired power stations, whether it’s nuclear power stations, whether it’s gas peaking stations, all of these things take time to build.

Is there a short-term fix?

Ted O’Brien

Stephen, I think the best thing we can do in the short term is number one, not close our baseload power stations prematurely, which is Labor’s plan. They plan to close 90% of our baseload power over the next decade.

So basically, we have 24/7 electricity being produced by these power stations. Labor wants to shut them down, and the more they have their policies in that direction, it means the big coal plants, well, they don’t invest enough in maintenance that causes problems on the grid. So that’s the first thing that they should change.

Secondly, they are attacking gas. We are depleting gas at a rapid rate. We are running out of gas. They should stop doing that.

And thirdly, stop telling lies and having false promises on renewables. There’s nothing wrong with wind and solar being a part of a balanced energy mix, but they can’t do the job on their own. They’re not being rolled out like Labor say they are, and everybody at home is feeling the pain in their in their power bills.

Stephen Cenatiempo

I want to talk about the closing of the coal fired power stations, because Labor would argue that they are coming into the end of their useful life anyway.

Ted O’Brien

Well, Labor argued that, but it’s completely in contrast to the evidence. And so, Labor wants to, as I said, they want to close 90% of our baseload power over the next decade. When you have a look at market operators reports, they show that the owners of these coal plants have plans for them to last far longer.

So Labor is bringing them forward on this false premise that they are going to have a replacement ready to go, but there is no replacement ready to go, and this is the thing that they’re turning off one system before having another system ready to go, and that puts the entire thing at risk. Which is why, as coal falters, because Labor is pushing it out, you turn to gas. But hang on, they’re also killing gas, so we’re running out of gas. This winter we went so close to running out of gas entirely in the southern part of eastern Australia.

Stephen Cenatiempo

So, when you talk about 90%. How much of that can remain open? Because I know, I mean, I’ve got a fair bit of experience with the Hunter Valley, and I know Liddell and Bayswater are dilapidated and have of come to the end of their use for life. I know Eraring has still got a bit more life in it, but what is the rest of the grid looking like?

Ted O’Brien

Yeah, it’s a bit of a mixed bag. Steven, it’s actually a really insightful question, because it’s not a simple catch all answer, either that you can say, right, the whole lot can be extended by this or that.

We’re not even talking extensions, per se. We’re just saying, well, let them live their life. That’s the point. So, you know, I’m not even talking about the coal plant owners saying, you know, we want to extend beyond the normal life. We’re just saying, coal plant owners saying, look we see our own assets coming to the end here and then Labor saying, now we’re going to bring all that forward.

And then you get to the question of, well, can they be extended? Should they be extended? And you’re right that there are some coal plants, because Labor is sending all the messages that were out to kill you. If you’re an owner of a plant, why would you invest hundreds of millions of dollars to keep that plant operating efficiently? If someone’s out to kill you and that asset, you take a step back and say well, I’m not going to keep investing in this thing. And so that’s where you do see problems in the plants themselves, their own efficiencies.

And so this is where government signals and government policy is key, because you can have the private sector owning some of these plants. They’re not going to keep investing in it if the government is out to kill them, and that’s what we’re seeing today.

Stephen Cenatiempo

So we talked about the increases here in Canberra, $350 a year since July last year, or 13%. When it comes to gas costs $265 or 11% since July last year. We’re talking about a trajectory of price increases of somewhere around the 13% mark again in 2024-25. What’s the rest of the country looking like?

Ted O’Brien

Yeah, the rest of the country is just as bad. Again, it’s a little bit mixed.

For the ACT, households are probably paying about $730 more a year for electricity than what Labor had promised them. Because you might recall Labor had promised a $275 reduction power bills, and it’s increased.

So you’re paying about $730 more every year and when it comes to gas, you’re probably paying over $550 more a year since Labor came to office. The rest of the country, it’s very similar. There are areas of New South Wales that you know are paying almost $1,000 more what Labor promised for electricity alone.

Stephen Cenatiempo

Well, I’d say I’m glad we’re coming towards the end of winter, but a hot summer’s just as bad, so no relief in sight. Ted, good to talk to you this morning.

Ted O’Brien

Likewise. Thanks, Steven all the best.

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