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COAG: NEG makes its way towards the starting line – but action needed now
20 Apr 2018 | Media Release
The Australian Chamber of Commerce and Industry welcomes the decision of the COAG Energy Council to progress development of the detailed design of the National Energy Guarantee, Australian Chamber CEO James Pearson, said today.
“We urge the COAG Energy Council to bring forward the timetable for agreement and implementation,” Mr Pearson said.
“The detailed design won’t be determined by the Energy Council until August – that’s a long time for business and households to wait for the next instalment in this process.
“High energy costs are hitting businesses and households every day of the week.
“It should be a top priority for the federal government and every state and territory government, and they should be working around the clock to fix it.
Mr Pearson questioned how the Federal, State and Territory Governments will address energy affordability in the short term.
“While the design of the NEG is being finalised, what action will energy ministers across the country take to lower energy costs this year?
“Years of ideologically-driven investment uncertainty have led to a reduction in generation capacity and contributed to the steep rise in electricity costs.”
“Yet uncertainty isn’t the only, or even the main factor, driving prices higher and COAG energy ministers must turn their attention to those factors too.”
That includes:
- Reducing excessive network costs
- Considering ways to reduce the level of concentration in wholesale and retail markets
- Encouraging access to, and development of, natural gas resources
“To prevent business closures and job losses, all the factors driving prices higher need to be addressed as part of an integrated national energy policy,” Mr Pearson said.