If Angus Taylor gets his way, all east coast electricity consumers will be forced to subsidise coal-fired power stations as part of an unnecessary and expensive ‘reliability requirement’.
Scandal-plagued energy minister Angus Taylor is on the verge of implementing a plan to force electricity consumers to subsidise unviable coal-fired power stations to continue operating — a plan that is opposed by the bulk of the electricity generation and retailing industry.
Both Reneweconomy and the Financial Review have reported seeing a draft set of recommendations by the Energy Security Board proposing to impose a physical retail reliability obligation (PRRO) on electricity retailers. This would require retailers to purchase capacity for dispatchable power supply — most likely from the owners of fossil fuel power plants. The proposal, along with other electricity market reform recommendations, will go to national cabinet for consideration.
The PRRO and the “capacity market” it is intended to create is ostensibly about ensuring reliability of power supply, despite the fact that it is now gas and coal-fired power that is the least reliable major form of energy, with gas and coal-fired plants forming 40% of all unplanned outages across 2018-19, before Queensland’s Callide C plant exploded this year, shutting it down for a year, after having broken down repeatedly in 2020. Queensland’s Kogan Creek station is the least reliable in the country.
Read more about Angus Taylor’s latest scheme…
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