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LNP, One Nation would force Queensland energy prices up; Greens, ALP down

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A new analysis of the energy policies presented by the major and smaller parties contesting the Queensland state election shows that the Greens would deliver the biggest electricity savings, Labor would also push prices down, while One Nation and the LNP policies would force prices to rise.

Energy has emerged as one of the key factors in the Queensland poll, which is proving impossible to predict because of the rise of One Nation, and the potential of both the Katter Party and The Greens to grab some seats.

The energy war is being fought on two levels: the LNP and One Nation are pushing for coal, and a new coal-fired generators, while the ALP and the Greens are focused on clean energy, and targets of at least 50 per cent renewables by 2030.

Sarina,_Queensland_(iii) copy wikimedia commons

Sarina, Queensland. Source: Wikimedia Commons

Policies are also being marked by potential write-downs of network assets, rebates, the creation of a third government generator, and the transformation of for profit utilities to non-profit institutions. Think electricity as a public service.

The analysis by Queensland-based energy expert Hugh Grant concludes that there would be a wide range of price impacts arising from the various policies, ranging from a price reduction of around $600 a year from the Queensland Greens’ policies, to a price increase of around $30 from the LNP’s policies.

The full report can be found here.

Grant says there are a number of factors driving the differing price impacts, but the key outcomes are the treatment of carbon and renewable policies, and how much profit from the government-owned energy companies the parties are willing to forego.

Out of an average bill of $1,750, around $500 are profits extracted by the Queensland government from the state-owned energy businesses.

Labor and the LNP are only willing to forego about $50 a year from that profit pool, while the smaller parties would give up a lot more: the Greens the full $500, and the Katter and One Nation parties around $300.

On carbon and renewables, Grant says that the Labor and Greens policies are broadly consistent with Australia’s international emissions reduction commitments, and recognise that renewable generation is now the lowest cost of new capacity.

“By contrast, One Nation and LNP are proposing policies that are inconsistent with Australia’s international emissions reduction commitments and are in denial of the economics of renewable generation,” Grant says.

“By scrapping the existing renewable energy targets, the LNP and One Nation are proposing to remove the only policies that are putting downward pressure on generation prices.”

Both LNP and One Nation want to support a new and “unwarranted and uneconomic” coal-fired power station in North Queensland, which Grant says would not only increase prices, it would also add to system security risks.

“The One Nation and LNP policies would result in ongoing policy chaos, driving further unnecessary increases to Queensland’s wholesale electricity prices and to the wholesale prices in the other states,” Grant says.

“They would also increase system security risks in Queensland and interstate.”  

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  • hugh grant
  • solarguy

    It’s a damned shame we can’t legislate against stupidity!

    • Joe

      Yes, but we can Vote against it!

      • solarguy

        We will but there are a hell of a lot of morons out there Joe old son.
        Stupid is, as stupid does.

  • JIm

    Wonder if Courier Mail is covering this or just reporting what fronts for the coal industry claim?

    • Joe

      CM…is that one of Rupert’s newsrags?

      • hugh grant

        I wrote this to the Courier Mail earlier today…..

        Its a very sad state of affairs when Queensland’s most powerful news outlet appears to be deliberately ignoring the only independent analysis of the Queensland Parties’ electricity policies – and instead gives centre stage to blatantly biased LNP lobby group propaganda.

        Over the past few years, you have had no hesitation in publishing my research and analysis when it is critical of Labor policies – so why is your organisation deliberately ignoring my latest analysis?

        The Queensland public deserves balanced reporting – not the propagation of fake news.

        • Joe

          Rupert’s newsrags are always in ‘campaign mode’ for The COALition. We get that here in Sydney everyday with Rupe’s ‘The Daily Telegraph’. ‘The Australian’ is probably the worst of the lot and I really don’t know how people can hand over their hard earned for a copy of The (Un Australian.

        • mick

          what was the excuse

  • crazy biologist

    There seems to be some disparity between the table at the top of this page and the statements in the headline and the first paragraph about One Nation.

  • PacoBella

    A good analysis of price differences. Could usefully be coupled with analyses of the resulting differences in greenhouse gas emissions and employment in the coal Vs renewable energy industries. Please like this on Facebook and get the message out to the wider public (ie those not smart enough to read RenewEconomy themselves).

  • Radbug

    One Nation doesn’t work on logic. Every party has a governing paradigm, even if they don’t stick to it. The Liberal paradigm is expounded in the works “Road to Serfdom” and “Constitution of Liberty”. Ditto with the Greens & the ALP. One Nation, like Trump & his supporters, National Socialism, & ISIS, expounds a disavowal of the Age of Reason, with an embrace of superstition, delusion & scapegoating (read Rene Girard). Your reasons for higher power prices mean nothing to them. Their minds work according to their own non-reason-based rules.

  • hugh grant

    I wrote to the Courier Mail earlier today stating the following:

    Its a very sad state of affairs when Queensland’s most powerful news outlet appears to be deliberately ignoring the only independent analysis of the Queensland Parties’ electricity policies – and instead gives centre stage to blatantly biased LNP lobby group propaganda.

    Over the past few years, you have had no hesitation in publishing my research and analysis when it is critical of Labor policies – so why is your organisation deliberately ignoring my latest analysis?

    The Queensland public deserves balanced reporting – not the propagation of fake news.