“The move by the Victorian government to force its half-baked SEC into the constitution guarantees higher household energy bills, makes blackouts more likely, and undermines Australia’s energy security,” said Daniel Wild, Deputy Executive Director of the Institute of Public Affairs.
The announcement by the Victorian government today that it will force its ideologically driven SEC into the state’s constitution means higher energy costs for families already suffering from a 25 per cent price hike this year alone.
“The effective re-nationalisation of Victoria’s energy grid, now to be locked into the state’s constitution, is an admission by the government that it has completely botched the state’s energy market through its net zero plan, and highly subsidised renewables, which have completely distorted the market,” said Mr Wild.
The Victorian government’s plan to pursue a renewable energy target of 95 per cent by 2035 will see the energy bills of families and small businesses soar, and many manufacturing and resources jobs lost.
“It won’t be the wealthy, inner-city elites who will incur these costs, it will be working families and small businesses in the outer-suburbs and regions. At a time when energy bills are skyrocketing, locking in permanently higher energy bills is the last thing struggling Victorian families need,” said Mr Wild.
The Australian Energy Market Operator’s 2023 Electricity Statement of Opportunities report also found Victoria is expected to have reliability gaps in the upcoming two summers, increasing the risk of blackouts.
“The Victorian Government’s plan is creating more demand for electricity at the same time it is destroying the state’s affordable and reliable electricity generation sources, and has banned gas from being extracted,” said Mr Wild.
“Victorians are already paying the price for the state government’s constitutional ban on gas, and today’s announcement will only heighten the likelihood of blackouts not seen since the former SEC was in operation.”