The new energy strategy will see AGL, Energy Australia and Origin face deregistration if they fail to comply with implemented quotas.
The Clean Energy Target (CET) will be officially scrapped, and Prime Minister Malcolm Turnbull has unveiled his own strategy to drive down power prices.
Turnbull will head to the Coalition party room today armed with an energy framework, called the National Energy Guarantee (NEG), due to be implemented in 2020.
Malcolm Turnbull’s done what Donald Trump has done, he’s just not done it as extravagantly
The Daily Telegraph reports the new approach will force energy giants AGL, Energy Australia and Origin to meet new reliability and emissions quotas or they will be deregistered. They will have to guarantee adequate storage and stability in the system, as well as a low-emissions quota to meet Paris commitments by 2030.
It is also understood to scrap subsidies for renewables and extend the lifespan of coal.
Household electricity bills are set to be reduced by between $100 and $115 a year as a result – which, according to modelling on the NEG by the Energy Security Board,
is more than would have been achieved by the CET.
The NEG has been designed by the Energy Security Board, the Energy Market Commission, the Market Operator AEMO, and the Australian Energy Regulator.
The reaction from both sides
Trade Minister Steve Ciobo applauded the new approach.
“We expect this will absolutely put downward pressure on energy prices,” he told Sky News.
“The great thing about this approach too is that it’s technology-agnostic…It’s got to be reliable and it needs to reduce emissions over time.”
Meanwhile, Greens leader Richard Di Natale lashed out at Turnbull, comparing him to Donald Trump.
“Alan Finkel (chief scientist behind CET) has been comprehensively shafted. This represents the complete capitulation of Malcolm Turnbull’s leadership,’ he told Sky News.
The Senator said the policy is as good as pulling out of the Paris climate agreement.
“Malcolm Turnbull’s done what Donald Trump has done, he’s just not done it as extravagantly,” he continued.
“We can’t achieve those Paris reduction targets based on this plan.”