[null, {"document_url": "https://www.9news.com.au/national/2018/07/12/08/03/govt-open-to-underwriting-new-power-plants?app=applenews", "unformatted_src": "https://cf-images.ap-southeast-2.prod.boltdns.net/v1/static/664969388001/c7f79ca8-0937-4f84-832e-31e15470afc2/9c60977a-3515-45c5-b1ba-843e6f53ed23/640x360/match/image.jpg", "src": "https://cf-images.ap-southeast-2.prod.boltdns.net/v1/static/664969388001/c7f79ca8-0937-4f84-832e-31e15470afc2/9c60977a-3515-45c5-b1ba-843e6f53ed23/640x360/match/image.jpg", "formatted_filename": "image"}, null]


Govt weighing up support for power assets including coal

1:09pm Jul 12, 2018 The Turnbull Cabinet will "carefully consider" taxpayers supporting new power assets, including coal and gas plants, in the wake of the damning consumer watchdog review into prices.

Energy Minister, Josh Frydenberg, said the recommendation in the ACCC report "has merit", after the Prime Minister also left the door open.

Mr Frydenberg told the TODAY Show that underwriting new sources of power "certainly could include coal and gas".

Josh Frydenberg says government will consider taxpayer support (AAP)

But also renewables, the minister said.

"The ACCC doesn't specify what type of technology it should support," Mr Frydenberg said.

"The focus is the outcomes. Namely lower prices, and a more stable system.

"This is certainly an important recommendation and one that certainly has merit too."

PM leaves door open to underwriting power assets (AAP)


Malcolm Turnbull told ABC radio this morning “you’ve got to be technology neutral”.

“Only a technology neutral approach will get power prices down,” the prime minister said.

“We’re not advocating one technology or another."

Mr Turnbull recently told a lunch in Brisbane, the government would look further at the proposal.

"But this recommendation has the distinct advantage of being thoroughly technology-agnostic and well-designed. It should serve our goal of cheaper and reliable energy," he said.

The recommendation was immediately seized upon by Coalition MPs, pushing for more coal and gas-fired power stations as vindication for their push back against the government's energy policy, the National Energy Guarantee.

While the government considers underwriting new sources, Mr Turnbull insisted the days of subsidising energy generation are over.

“We are not in the nosiness of subsidising one technology or another,” he said.

“We’ve done enough of that. Frankly, there’s been to much of that.

“The subsidies should come to an end and they’re winding down.

“We should simply allow the technologies to compete and what we want is the outcome of lower prices.”

Labor leader, Bill Shorten, who hasn’t yet read the ACCC recommendations, said Mr Turnbull should defy the agitators in the coalition.

“We’ve got a debate that’s about placating the knuckle dragging, save dwelling right of the Liberal Party, promising mirage coal fired power stations that cost billions of dollars,” he said.

“All because, Mr Turnbull doesn’t have the intestinal fortitude to back in renewable energy.”


Former prime minister, Tony Abbott, the most outspoken critics of what he sees as a more green-friendly policy, said the ACCC recommendation backed calls for more base-load power in the energy market.

It was seen by some, as a way to end the internal Coalition war of energy.

But, as Mr Frydenberg pointed out, it doesn't specify one form of generation.

"What the ACCC has identified is a market failure that new generation assets can't be built because the companies that want to build them can't get the finance from the banks," the minister said.

"And one of the reasons that can't get the finance is they can't secure agreements with the energy users for long-term.

"So, what they're saying is the government needs to step in here and provide some sort of surety."

The ACCC report contains 56 recommendations, that if accepted, it says, would cuts household power bills by hundreds of dollars a year.






