The Council of Australian Governments (COAG) Energy Council meeting today reached agreement on 49 out of 50 key recommendations from the independent Finkel Review of the national electricity market transition to low carbon, including in relation to reliability obligations on new generators.
The Federal Government is still considering its position on the Clean Energy Target and the modelling from the Finkel Review which recommended it.
“The South Australian Business Chamber welcomes the significant progress from the Finkel Review which was endorsed through COAG today, particularly around new reliability obligations on generators”, Executive Director, Industry and Government Engagement, Anthony Penney, said today.
“Prior to the September blackout, the South Australian Business Chamber led a joint South Australian call for an independent review of the costs and benefits of all options to transition our electricity network to low carbon while protecting reliability and price and today’s near total endorsement of the Finkel Review’s recommendations is fantastic for South Australia”
“The State-wide blackout cost South Australian business $450 million and is critical that all reasonable steps to mitigate against such future occurrences, including a generator reliability obligation, are implemented in a timely manner” Mr Penney said.
“The generator reliability obligation should also put downward pressure on contract prices for business with a requirement for some level of dispatchable generation for new power plant’
“The South Australian Business Chamber recognises that some of the assumptions from the CET modelling in the Finkel Review report were slightly outdated, particularly in respect to the price of gas, and that the Federal Government should consider the outcomes with current inputs while recognising that this modelling is not the only aspect they need to consider”
“South Australian businesses have been paying a significant price over the past two years for not having an agreed national emissions policy for the NEM and we desperately need cooperation between State and Federal Governments”
“This is not about who is right or wrong, rather what is in the best long term interests of consumers as is mandated under the National Electricity Law” said Mr Penney.
