Government’s “Unforgiveable Broken Promise” Energy Prices On The Rise

The Australian Government has found itself in quite a pickle after breaking its election promise to reduce overall household energy bills by $275. The draft of regulated electricity prices was released on March 20 after the national energy regulator pledged to intensify efforts in safeguarding consumers.

Dale Last, Member for Burdekin, remained reluctant about the proposal, raising major concerns that it wouldn’t be enough to ensure regional customers can afford to keep the lights on in their homes.

Upon the release of the Australian Energy Regulator's draft decision, it appears that Queenslanders who are unable to seek alternative suppliers will face a $53 hike in the coming months.
Mr Last said the draft decision was another kick in the guts for regional customers at the mercy of a monopoly energy market.
“The fact that a report by Energy Queensland found more than 50 per cent of customers were concerned they would not be able to pay their upcoming power bill should be ringing alarm bells not only with regulators but the Minister,” Mr Last said.
“For years we’ve seen promises of rebates and cheaper electricity only to find when the bill arrives that those rebates, concessions and promises are sucked up by the soaring prices we are left to pay.”
“The draft Default Market Offer has confirmed that the Government has fallen short by up to $1,027 of its promised price reduction for everyday households, equivalent to a 37% increase.”

As a sign of the suffering faced by everyday Australian households, startling new numbers from the AER have also revealed 116,753 people have been placed into hardship due to their skyrocketing energy bills and 192,459 people are now in energy debt.

Federal Member for Dawson Andrew Willcox said the skyrocketing price of energy was consigning local people to energy poverty.

“Labor was elected on a promise that it would reduce household electricity bills by $275 but instead Australians are now paying among the most expensive bills in the world,” Mr Willcox said.

“This is simply unaffordable for residents in my community who are already suffering.”

The Shadow Minister for Climate Change and Energy Ted O’Brien said Labor’s broken promise on energy prices was “unforgiveable”.

“The Australian people deserve nothing less than a complete and unreserved apology from Prime Minister Albanese for making households and businesses pay for his failures,” he said.

Prior to its election, the Australian Labor Party promised to create jobs, cut power bills and reduce emissions by boosting renewable energy.

“This plan will bring cheaper renewable energy to Australian homes and businesses,” said the Australian Labor Party statement. 

“It will cut power bills for families and businesses by $275 a year for homes by 2025, compared to today.”

The draft DMO, released by the Australian Energy Regulator, sets the ‘reference price’ for electricity bills for the 2024-2025 period and will now be consulted on before the final determination is made in coming months.

The final 2023-24 DMO recorded increase in the overall cost of electricity, throwing into the question the likelihood of any substantial changes before the final determination for the 2024-25 DMO is made.

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