Nationals Senator for Victoria, Bridget McKenzie said today the new national energy guarantee package announced by the Government today will give significant relief to high electricity users in Victoria.
“Dairy farmers have told me of the increasing strain they are experiencing through ther increasing cost of electricity used to operate their farms and particularly irrigation.
“The Food and Grocery Council has pointed out the cost of energy for food processing and small business is also feeling the strain of electricity costs.
“The new package of measures will considerably reduce those expenses in these and other areas including manufacturing in Victoria which employs more than 300,000 workers.
The Independent Energy Security Board recommended the Guarantee which will give certainty to investors and therefore encourage investment in all forms of power.
“This means electricity bills will be lower than currently forecast and lower than they would have been under a Clean Energy Target”.
Senator McKenzie said with a hot summer predicted in Victoria, the Australian Energy Market Operator (AEMO) is predicting a 44% chance of blackouts in the state.
“With that prediction in mind, what makes this such a winner for regional areas is it will set a reliability guarantee that will deliver the right level of dispatchable energy from ready to use sources such as coal, gas, pumped hydro and batteries needed in each state.
“It includes an emissions guarantee which will be set to contribute to Australia’s international commitments with the level of the guarantee determined by the Commonwealth and enforced by the Australian Energy Regulator.
“Past energy plans have subsidised some industries, punished others and slugged consumers.
“This new system will lower electricity prices, make the system more reliable, encourage the right investment and reduce emissions without subsidies, taxes or trading schemes.
“Regional Australia will benefit because as well as delivering a better deal for households, this plan will support business, particularly emissions intensive, trade exposed firms,” Senator McKenzie said.