Today’s Quarterly Energy Dynamics report (QED) from the Australian Energy Market Operator (AEMO) reveal electricity prices have increased 140 percent in the last 12 months, mainly driven by high coal prices and breakdowns at coal power stations.
Price rises have been highest in the most coal dependent states of NSW and Queensland. Queensland prices are currently a staggering $150 MWh, more than double the $70 MWh cited by the Government in the March budget.
The price rises are also in stark contrast to the Government claims as recently as yesterday that “the cost of electricity has come down about 8% over the last 2 years.”
“The market operator has made it clear that coal power station breakdowns and rising coal prices are the main cause of skyrocketing electricity prices. This is what we can expect if we remain dependent on coal for our power, said Richie Merzian, Director of the Climate & Energy Program at the Australia Institute.
“Coal prices are set by global markets. When the coal prices rises due to international conflicts, so do our electricity bills.
“While we remain dependent on coal we will always be at the mercy of high coal prices and outdated and unreliable coal power stations.
“There is a simple solution, move to cheaper, more reliable renewable energy with battery storage, and never have to worry about high coal prices or large scale breakdowns again.
“The Prime Minister’s plan to keep coal power stations ‘running as long as they possibly can’ is a recipe for unreliable and expensive electricity.”