We know that the coalition are better economic managers because they told us so. The coalition are also good on one liners. As Josh Frydenberg told us during the budget speech “The government is delivering on its commitment to secure affordable and reliable energy supply and has achieved its goal of wholesale electricity prices under $70/MWh”.
The worrying thing is that they now lie to us without hesitation : Josh Frydenberg at every opportunity tells us how electricity prices have fallen 8 per cent since the last election due to the ‘steady as she goes’ coalition management of the economy. What he doesn’t mention is the 10 per cent lift in car prices, the 8 per cent increase in milk prices, the 11 per cent jump in furniture prices or the 13.5 per cent increase in childcare costs since 2019.
But even on electricity costs they are telling lies. The Australian Energy Market Operator (AEMO) said in recent days that wholesale electricity costs have soared 141 per cent in the three months to 31 March 2022 compared with the same period last year and these increases will be passed on to consumers (probably after the election).
The Sydney Morning Herald reports that :
‘In the first quarter of the year, NSW’s wholesale price was $87 a megawatt hour, up 129 per cent from $38 a megawatt hour this time last year. In Queensland, the wholesale price hit $150, up 248 per cent from $43.
The wholesale price for the first quarter in Victoria was just $57 a megawatt hour. The state relies on brown coal, which unlike black coal is not influenced by the global market because it’s not exported.
South Australia, which doesn’t burn any coal and has the greatest proportion of renewable power in its energy mix, had a wholesale price of $71 in the first quarter. ‘
In WA electricity prices are regulated by the state government so that consumers are not hit by fluctuating world pricing on energy.
They won’t mention that wind and solar costs are not subject to international price fluctuations but as we are generally locked into global pricing structures on coal and gas, with seventy percent of our electricity coming from fossil fuels, the benefits of a transition to renewable energy have yet to show up in national energy costs across the nation – and if Canavan and the Nationals have their way they never will.
Frydenberg is in denial and has yet to acknowledge this massive increase in electricity costs but when he does he will undoubtedly lay the blame with … wait for it … the Labor party and the best way of avoiding these increases is to re-elect the coalition.
Morrison has said that the reasons for the increases, apart from Labor, are the war in Ukraine which has created shortages of coal and gas and according to Scott the rigid laws of supply & demand require that we pay more for our own coal when it’s in short supply in Europe – go figure !
The solution to this global market disruption according to Morrison – I don’t hold a shovel mate – is not to vote for Labor or the TEAL Independents and all will be well.
You know and I know that the real problem is that we are locked into global markets for the supply of fossil fuels and until we start to take seriously the transition to renewable energy we will continue to be price takers when it comes to coal and gas even though we are one of the world’s major suppliers of both commodities.
Meanwhile, the coalition have dropped the economy as being their strong suit and have moved on to national security and preparations for war. Over to you Captain Mainwaring.
Seriously, how could anybody re-elect this mob ?
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