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West Australian
18-06-2025
- Business
- West Australian
‘Could be so much simpler': Energy Minister Chris Bowen announces energy price cap overhaul
Energy Minister Chris Bowen has announced a raft of proposed reforms designed to save Australian households from soaring power prices. Speaking at Australian Energy Week in Melbourne on Wednesday, Mr Bowen said reform to the way the energy price cap mechanism worked outside of Victoria was needed in order to make price caps effective. 'Currently, the independent Australian Energy Regulator (AER) sets the default market offer (DMO) as a benchmark for residential and small business electricity bills in NSW, South East Queensland and South Australia, while here the Victorian default offer is set by the Essential Services Commission,' he said. '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. 'However, I'll be frank. I don't think it's working that way and reform is needed.' Mr Bowen said the vast majority of bill payers, 'some 80 per cent', could be getting a better deal. 'It's difficult to defend the DMO when the customer is required to do the deal hunting,' he said. 'We know it could be so much simpler.' Mr Bowen announced that in 2026 the federal government would be delivering a 'reformed pricing mechanism' designed 'to get the best deal for consumers and act as the maximum price retailers can charge for standing offers in DMO regions'. 'The reformed pricing mechanism will bring DMO states closer in line with other jurisdictions like here in Victoria, which this year has seen significantly smaller bill increases compared to DMO regions,' he said. The Victorian default offer (VDO) rose by less than 1 per cent in 2024–25, while the DMO varied much more widely; in NSW some residential customers experienced a decrease of about 1 per cent, while in South East Queensland prices increased by about 4 per cent. The announcement has drawn criticism from energy providers who say they're surviving on razor-thin profit margins as it is and the planned overhaul could put small energy providers out of business. One of Australia's biggest energy providers AGL issued a statement in response, saying it would look forward to engaging with the government on the review but 'to reduce energy bills, we need to look at the whole picture'. 'The government and industry are actively working on measures to reduce wholesale electricity costs. At 40 per cent of an average bill, network costs are a big component of bills and are continuing to grow quickly,' the statement read. 'A focus on improving network productivity is essential to keep these costs in check. Retail costs only represent around 10 per cent of an average bill and we need to carefully consider any moves that could lessen competition in the retail market, particularly if smaller retailers were no longer able to operate.'
The Advertiser
17-06-2025
- 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.
Global News
12-06-2025
- Business
- Global News
Premier Danielle Smith faces raucous, angry town hall on Alberta's coal policy
Premier Danielle Smith and three of her ministers got an earful on Wednesday night from southern Alberta locals at a rowdy, hours-long town hall to discuss the province's coal policy. About 500 people, dressed in cowboy hats, belt buckles, and jeans, packed a community hall in Fort Macleod, Alta., for an event marked by heckling, competing applause and placards. 'If we are not prepared to look and find middle-ground solutions to allow for industries to proceed while reducing our environmental footprint, you're going to find that different industries become the next on the hit list,' Smith said through a chorus of protesting voices and verbal jabs. 'Banning industries is just not something we are going to do.' The premier and her ministers of energy, environment and agriculture took questions and were shouted down on several occasions by attendees as they defended changes to the province's coal policy. Story continues below advertisement Many in the crowd held small placards reading 'lie' and 'false,' raising them each time they disagreed with a statement. There was a notable group that came in support of the province's coal policy, frequently applauding the ministers and shooting back at other crowd members. Many attendees carried notebooks and pens, keenly taking notes throughout. 2:27 Alberta Energy Regulator approves Grassy Mountain coal exploration The town hall came weeks after the Alberta Energy Regulator, or AER, granted an Australia-based coal company permission to start a controversial coal exploration on the eastern slopes of the Rocky Mountains. Northback Holding Corp.'s project at Grassy Mountain was initially rejected in 2021 when a panel ruled that the likely environmental effects on fish and water quality outweighed the potential economic benefits. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Late last year, the project was exempted from the Alberta government's decision to ban open-pit coal mines because Northback's application was considered an 'advanced' proposal. Story continues below advertisement The issue has been polarizing in southern Alberta, where the debate has primarily revolved around the economic implications of development against environmental effects. A non-binding referendum in Crowsnest Pass saw 70 per cent of voters saying they'd support the nearby coal project. Despite frequent pushback over the two-and-a-half-hour event, Smith rarely chose to get into back-and-forth discussions with attendees. She defended the province's approach to coal developments, pitching responsible development that prioritizes environmental standards. Smith also frequently cited a lawsuit by five coal companies that say they're owed $15 billion by the province in lost revenues and sunk costs. She argued again on Wednesday that she had taxpayers in mind when the province lifted its moratorium on coal mining and development on the eastern slopes. 'If we do nothing, then we are told we'll likely lose those cases and have to pay ($15 billion).' Story continues below advertisement An energetic Brian Jean, the province's energy minister, frequently challenged the boisterous crowd and at times trotted offstage to hand his business card to those asking questions. 'I live in the oilsands. You can't tell me what I'm concerned about and what I'm not concerned about. I'm very concerned about our Earth and our planet,' he said. Several questions returned to a new study by Alberta government scientists, yet to be peer reviewed, which recently said old coal mines on the eastern slopes are poisoning fish and any further coal mining there would result in 'population collapse' of fish species in a nearby lake. Asked about the report, Environment Minister Rebecca Schulz said the province is looking into the issue and is waiting for it to be confirmed by the peer-review process. She said further studies to be released later this year are being conducted. 'We want to understand what is happening there so that we can prevent that from happening in the future.' The premier also jousted with protesters while speaking to reporters before the town hall. When a group gathered behind her and started yelling, she turned around and asked them to let her finish the interview. 'I'm looking for a little bit of courtesy,' she said. The event was scheduled to last two hours, but Smith asked to take questions for an extra 30 minutes after the clock had run out.
National Observer
12-06-2025
- Business
- National Observer
Alberta premier faces angry town hall on province's coal policy
Alberta Premier Danielle Smith and three of her ministers got an earful on Wednesday night from southern Alberta locals at a rowdy, hours-long town hall to discuss the province's coal policy. About 500 people, dressed in cowboy hats, belt buckles, and jeans, packed a community hall in Fort Macleod, Alta., for an event marked by heckling, competing applause and placards. "If we are not prepared to look and find middle-ground solutions to allow for industries to proceed while reducing our environmental footprint, you're going to find that different industries become the next on the hit list," Smith said through a chorus of protesting voices and verbal jabs. "Banning industries is just not something we are going to do." The premier and her ministers of energy, environment and agriculture took questions and were shouted down on several occasions by attendees as they defended changes to the province's coal policy. Many in the crowd held small placards reading "lie" and "false," raising them each time they disagreed with a statement. There was a notable group that came in support of the province's coal policy, frequently applauding the ministers and shooting back at other crowd members. Many attendees carried notebooks and pens, keenly taking notes throughout. The town hall came weeks after the Alberta Energy Regulator, or AER, granted an Australia-based coal company permission to start a controversial coal exploration on the eastern slopes of the Rocky Mountains. Northback Holding Corp.'s project at Grassy Mountain was initially rejected in 2021 when a panel ruled that the likely environmental effects on fish and water quality outweighed the potential economic benefits. Late last year, the project was exempted from the Alberta government's decision to ban open-pit coal mines because Northback's application was considered an "advanced" proposal. The issue has been polarizing in southern Alberta, where the debate has primarily revolved around the economic implications of development against environmental effects. A non-binding referendum in Crowsnest Pass saw 70 per cent of voters saying they'd support the nearby coal project. Despite frequent pushback over the two-and-a-half-hour event, Smith rarely chose to get into back-and-forth discussions with attendees. She defended the province's approach to coal developments, pitching responsible development that prioritizes environmental standards. Smith also frequently cited a lawsuit by five coal companies that say they're owed $15 billion by the province in lost revenues and sunk costs. She argued again on Wednesday that she had taxpayers in mind when the province lifted its moratorium on coal mining and development on the eastern slopes. "If we do nothing, then we are told we'll likely lose those cases and have to pay ($15 billion)." An energetic Brian Jean, the province's energy minister, frequently challenged the boisterous crowd and at times trotted offstage to hand his business card to those asking questions. "I live in the oilsands. You can't tell me what I'm concerned about and what I'm not concerned about. I'm very concerned about our earth and our planet," he said. Several questions returned to a new study by Alberta government scientists, yet to be peer reviewed, which recently said old coal mines on the eastern slopes are poisoning fish and any further coal mining there would result in 'population collapse' of fish species in a nearby lake. Asked about the report, Environment Minister Rebecca Schulz said the province is looking into the issue and is waiting for it to be confirmed by the peer-review process. She said further studies to be released later this year are being conducted. "We want to understand what is happening there so that we can prevent that from happening in the future." The premier also jousted with protesters while speaking to reporters before the town hall. When a group gathered behind her and started yelling, she turned around and asked them to let her finish the interview. "I'm looking for a little bit of courtesy," she said. The event was scheduled to last two hours, but Smith asked to take questions for an extra 30 minutes after the clock had run out.
Yahoo
12-06-2025
- Business
- Yahoo
Alberta premier faces raucous, angry town hall on province's coal policy
FORT MACLEOD — Alberta Premier Danielle Smith and three of her ministers got an earful on Wednesday night from southern Alberta locals at a rowdy, hours-long town hall to discuss the province's coal policy. About 500 people, dressed in cowboy hats, belt buckles, and jeans, packed a community hall in Fort Macleod, Alta., for an event marked by heckling, competing applause and placards. "If we are not prepared to look and find middle-ground solutions to allow for industries to proceed while reducing our environmental footprint, you're going to find that different industries become the next on the hit list," Smith said through a chorus of protesting voices and verbal jabs. "Banning industries is just not something we are going to do." The premier and her ministers of energy, environment and agriculture took questions and were shouted down on several occasions by attendees as they defended changes to the province's coal policy. Many in the crowd held small placards reading "lie" and "false," raising them each time they disagreed with a statement. There was a notable group that came in support of the province's coal policy, frequently applauding the ministers and shooting back at other crowd members. Many attendees carried notebooks and pens, keenly taking notes throughout. The town hall came weeks after the Alberta Energy Regulator, or AER, granted an Australia-based coal company permission to start a controversial coal exploration on the eastern slopes of the Rocky Mountains. Northback Holding Corp.'s project at Grassy Mountain was initially rejected in 2021 when a panel ruled that the likely environmental effects on fish and water quality outweighed the potential economic benefits. Late last year, the project was exempted from the Alberta government's decision to ban open-pit coal mines because Northback's application was considered an "advanced" proposal. The issue has been polarizing in southern Alberta, where the debate has primarily revolved around the economic implications of development against environmental effects. A non-binding referendum in Crowsnest Pass saw 70 per cent of voters saying they'd support the nearby coal project. Despite frequent pushback over the two-and-a-half-hour event, Smith rarely chose to get into back-and-forth discussions with attendees. She defended the province's approach to coal developments, pitching responsible development that prioritizes environmental standards. Smith also frequently cited a lawsuit by five coal companies that say they're owed $15 billion by the province in lost revenues and sunk costs. She argued again on Wednesday that she had taxpayers in mind when the province lifted its moratorium on coal mining and development on the eastern slopes. "If we do nothing, then we are told we'll likely lose those cases and have to pay ($15 billion)." An energetic Brian Jean, the province's energy minister, frequently challenged the boisterous crowd and at times trotted offstage to hand his business card to those asking questions. "I live in the oilsands. You can't tell me what I'm concerned about and what I'm not concerned about. I'm very concerned about our earth and our planet," he said. Several questions returned to a new study by Alberta government scientists, yet to be peer reviewed, which recently said old coal mines on the eastern slopes are poisoning fish and any further coal mining there would result in 'population collapse' of fish species in a nearby lake. Asked about the report, Environment Minister Rebecca Schulz said the province is looking into the issue and is waiting for it to be confirmed by the peer-review process. She said further studies to be released later this year are being conducted. "We want to understand what is happening there so that we can prevent that from happening in the future." The premier also jousted with protesters while speaking to reporters before the town hall. When a group gathered behind her and started yelling, she turned around and asked them to let her finish the interview. "I'm looking for a little bit of courtesy," she said. The event was scheduled to last two hours, but Smith asked to take questions for an extra 30 minutes after the clock had run out. This report by The Canadian Press was first published June 11, 2025. Matthew Scace, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
