IPA Today

IPA Report: Net Zero To More Than Double Family Electricity Bills

Written by and
23 June 2022

“The blackouts and energy supply crisis gripping the nation have given Australians a rare glimpse into the future that awaits them as a direct result of the policy of net zero emission by 2050,” said Daniel Wild, Director of Research at the Institute of Public Affairs.

A landmark research report Australia’s Net Zero Energy Crisis: An analysis of the electricity price implications of net zero by 2050, released today by the Institute of Public Affairs has identified that under the policy of net zero emission by 2050, a further six coal-fired power stations are scheduled to close by the year 2030. These stations currently generate approximately one-fifth of Australia’s electricity.

The report estimates that the closure of these coal-fired power stations could, by the year 2030:

  • More than quadruple annual wholesale electricity prices.
  • More than double annual retail electricity bills.
  • Increase the typical Australian family’s annual electricity bill to $3250 ($810 per quarter), an increase of $1650 from today.

“The recent exponential rise in household power bills, along with the blackouts, are not an accident. It has been caused by deliberate net zero policy choices made by low voltage politicians on both sides of politics, cheered on by corporate and media elites,” Mr Wild said.

The report, Net Zero Nightmare: An analysis of the electricity price implications of net zero by 2050, also identifies the impact that net zero driven policies will have on the household budget around the nation:

  • Tasmanian families face the prospect of a 125% increase in retail electricity bills, rising from $2,000 to around $4,500 p.a.
  • Queensland families face the prospect of a 110% increase in retail electricity bills, rising from $1,200 to around $2,500 p.a.
  • NSW families face the prospect of a 100% increase in retail electricity bills, rising from $1,300 to around $2,600 p.a.
  • Victorian families face the prospect of a 95% increase in retail electricity bills, rising from $1,300 to around $2,500 p.a.
  • South Australian families face the prospect of a 90% increase in retail electricity bills, rising from $1,700 to around $3,200 p.a.

“Net zero is designed by and for the privileged inner-city elites. But it is the real Australians in the suburbs and regions who are going to pay the price,” said Mr Wild.

“The only way to fix Australia’s energy supply crisis is for both Labor and the Coalition to abandon their commitments to net zero and rapidly get more coal and gas into the market.”

“Australia needs more reliable and affordable energy, not unreliable renewables,” said Mr Wild.

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Daniel Wild

Daniel Wild is the Deputy Executive Director at the Institute of Public Affairs

Kevin You

Dr Kevin You is a Research Fellow at the Institute of Public Affairs

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