Latest news with #AustralianEnergyWeek
West Australian
6 hours ago
- Business
- West Australian
Energy minister plugs in for power price cap reforms
Caps designed to protect power users from excessive price hikes are not working as intended and need refining, the federal energy minister will concede in his first major speech since the election. A convincing Labor win also has Chris Bowen hopeful Australia can triumph in its bid to co-host global climate talks and muscle out competitor Turkey, with a decision expected soon. In a wide-ranging address to the Australian Energy Week conference in Melbourne, Mr Bowen will promise changes to the so-called Default Market Offer rules to force retailers to compete harder for customer dollars. "The DMO was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he will say on Wednesday. "However, I'll be frank. I don't think it's working that way and reform is needed." In several states, regulators enforce caps on what retailers can charge households and businesses to protect the hundreds of thousands of customers unable or uninterested in chasing a better deal. Caps are reviewed annually to reflect the costs of generation and moving electricity around through poles and wires. In NSW, South Australia, southeast Queensland, it's the independent Australian Energy Regulator's job, while in Victoria, the Essential Services Commission sets benchmark prices. Changes to AER's price cap mechanism have not yet been locked in, but could include clamping down on what retailers can claim back from customers on their bills. Mr Bowen said it was hard to defend price caps when 80 per cent of billpayers could be getting a better deal. "That's why we have work underway to deliver a better regulated pricing mechanism which will put downward pressure on electricity bills and also ensure the energy market better utilises the huge uptake of rooftop solar and batteries," he will say. Mr Bowen will declare Labor's thumping election win as a vote of confidence in its energy and decarbonisation policies. He says it puts Australia in a strong position to secure the rights to co-host the COP31 climate talks alongside Pacific nations. An announcement is possible at the UN climate meetings underway in Bonn, Germany. The bid has come under pressure following the federal government's proposed decision to grant an extension on the North West Shelf gas plant's operating life. The project was singled out by Oil Change International in a report showing the United States, Canada, Norway, and Australia are responsible for nearly 70 per cent of projected new oil and gas from 2025 to 2035.
Perth Now
7 hours ago
- Business
- Perth Now
Energy minister plugs in for power price cap reforms
Caps designed to protect power users from excessive price hikes are not working as intended and need refining, the federal energy minister will concede in his first major speech since the election. A convincing Labor win also has Chris Bowen hopeful Australia can triumph in its bid to co-host global climate talks and muscle out competitor Turkey, with a decision expected soon. In a wide-ranging address to the Australian Energy Week conference in Melbourne, Mr Bowen will promise changes to the so-called Default Market Offer rules to force retailers to compete harder for customer dollars. "The DMO was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he will say on Wednesday. "However, I'll be frank. I don't think it's working that way and reform is needed." In several states, regulators enforce caps on what retailers can charge households and businesses to protect the hundreds of thousands of customers unable or uninterested in chasing a better deal. Caps are reviewed annually to reflect the costs of generation and moving electricity around through poles and wires. In NSW, South Australia, southeast Queensland, it's the independent Australian Energy Regulator's job, while in Victoria, the Essential Services Commission sets benchmark prices. Changes to AER's price cap mechanism have not yet been locked in, but could include clamping down on what retailers can claim back from customers on their bills. Mr Bowen said it was hard to defend price caps when 80 per cent of billpayers could be getting a better deal. "That's why we have work underway to deliver a better regulated pricing mechanism which will put downward pressure on electricity bills and also ensure the energy market better utilises the huge uptake of rooftop solar and batteries," he will say. Mr Bowen will declare Labor's thumping election win as a vote of confidence in its energy and decarbonisation policies. He says it puts Australia in a strong position to secure the rights to co-host the COP31 climate talks alongside Pacific nations. An announcement is possible at the UN climate meetings underway in Bonn, Germany. The bid has come under pressure following the federal government's proposed decision to grant an extension on the North West Shelf gas plant's operating life. The project was singled out by Oil Change International in a report showing the United States, Canada, Norway, and Australia are responsible for nearly 70 per cent of projected new oil and gas from 2025 to 2035.
The Advertiser
8 hours ago
- Business
- The Advertiser
'I don't think it's working': electricity bill pricing set for overhaul
Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges. Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia. But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans. "The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne. "However, I'll be frank. I don't think it's working that way and reform is needed." Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills. "It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18. "We know it could be so much simpler." Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1. "Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say. Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down. "The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference. The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey. Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures. Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges. Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia. But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans. "The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne. "However, I'll be frank. I don't think it's working that way and reform is needed." Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills. "It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18. "We know it could be so much simpler." Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1. "Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say. Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down. "The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference. The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey. Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures. Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges. Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia. But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans. "The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne. "However, I'll be frank. I don't think it's working that way and reform is needed." Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills. "It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18. "We know it could be so much simpler." Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1. "Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say. Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down. "The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference. The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey. Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures. Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges. Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia. But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans. "The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne. "However, I'll be frank. I don't think it's working that way and reform is needed." Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills. "It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18. "We know it could be so much simpler." Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1. "Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say. Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down. "The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference. The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey. Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures.
West Australian
10 hours ago
- Business
- West Australian
Energy Minister calls for private sector to help Australia's renewables shift
Energy Minister Chris Bowen will pledge on Wednesday to cut tendering and approvals times for power projects as he calls on the private sector to help fund the national renewable roll-out. In his first major speech since Labor was reelected on May 3, Mr Bowen will tell the Australian Energy Week in Melbourne on Wednesday that Government alone can't deliver the energy transition. 'Government is not enough. We need the private sector and the community engaged, investing, thinking, innovating, risking and employing,' he will say, according to a draft version of the speech seen by The West Australian. The address will outline Labor's energy agenda next term, including plans to fast track the tender process of the Capacity Investment Scheme. The Government has so far underwritten about $17 billion of private investment into renewable and storage projects through the scheme, Mr Bowen will say. In Western Australia, that included Neoen's Muchea Big Battery. 'We will reduce the time taken to finalise tender outcomes to around six months from the current nine months by moving to a one stage tender process rather than two stages, as is the case now,' Mr Bowen will say. 'The sector still faces social license challenges, workforce constraints, and approval times. 'Together with the states and the industry, we are working to alleviate these constraints.' The Government will review the power price benchmark — called the default market offer — used to protect consumers in the east coast market. 'The DMO was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies,' Mr Bowen was expected to say. 'However, I'll be frank. I don't think it's working that way and reform is needed.' Mr Bowen was also expected to use the speech to back Australia's net zero targets and hit back both at climate deniers and critics that the Government was acting too slowly. 'Their denial of our momentum and ready willingness to seize on a day's headline and ignore the years of progress, can be just as disheartening and dangerous to the cause,' he will say. 'Commentating is easy. Sitting in the stalls like Statler and Waldorf in the Muppet show criticising others is not hard.' Mr Bowen will say Australia progressing its renewable agenda is needed to 'restore' its deteriorated 'climate reputation', especially amid it's bid to host the COP31 climate change conference in November 2026. He says Australia is making a 'serious and strong' bid for COP31 in a partnership with Pacific nations. Noting clean energy projects have exceed $3 trillion globally, Mr Bowen hinted that Australia could be considering lifting its investment, saying 'we want to grow this, and Australia's share in it'. Mr Bowen has already announced a wide-ranging review of Australia's energy framework this term, saying in Perth last month he's prepared to have 'tough conversations' with gas companies. The review is expected to be held from July 1 to investigate how market bodies can ensure greater gas access for Australians.
The Age
12 hours ago
- Business
- The Age
NSW could start getting a better deal on power prices, but not in time to stop July 1 pain
Soaring power prices will be curbed under a crackdown the Albanese government is launching to stop electricity companies overcharging households in NSW and Queensland that have suffered much larger average price rises than Victorians. Energy Minister Chris Bowen's pledge to reform how prices are set comes just weeks ahead of an annual surge in power bills kicks in on July 1, leaving the hardest-hit customers on the Essential network in regional NSW up to $228 worse off over the upcoming 12 months. The government is clamping down on a process run by a Commonwealth authority, the Australian Energy Regulator, which it believes was bad for customers in eastern seaboard states compared to Victoria, where power bills are set by the state-run Essential Services Committee. Bowen said the current system was not serving bill payers and had to change. 'I don't think it's working that way [it is intended to] and reform is needed,' Bowen will say, according to notes for a speech he will deliver to the Australian Energy Week conference in Melbourne on Wednesday. In NSW, south-east Queensland and South Australia power prices are set under a default offer, which imposes a maximum prices retailers can charge customers. While the greatest annual bill increase in NSW topped $200, the greatest in Victoria was $100 and the average price rise across the state was just $20 per customer. In Victoria, the state's Essential Services Commission sets the maximum bill retailers can charge based on the 'efficient price' of delivering electricity. However, for other states the Australian Energy Regulator also factors in the cost of competition between electricity companies, as well as the cost of retaining customers, when it decides default offer pricing.
