Australia’s disorderly transition and coal retirement will cost consumers

Energy consumers will pay higher electricity bills, increasing each year of a disorderly transition. New South Wales customers will pay $106 more by FY2027, increasing to $324 by FY2032.

In addition, keeping Eraring coal-fired power station beyond 2025 is unnecessary and will cost consumers $120-150mn a year in subsidies to Origin Energy. More to the point, recent and repeated unexpected shutdowns demonstrate that it will not guarantee power security and reliability. Delays would also increase emissions and risk emissions reduction targets.

We need to get on with the clean energy transition. To do this, governments need to accelerate the buildout of the renewable energy generation, and associated storage and transmission. We must give investors and developers certainty.  And there must be commitment to the strategic measures designed to support the system in what we must now accept is a ‘disorderly transition’.

It is critical that State and Federal governments stick to the timetable set for coal-fired power station retirement and rebuild confidence in the existing mechanisms and reforms currently underway to deliver affordable and reliable electricity.

Read our full report here Eraring closure extension will cost consumers- Nexa Advisory 19052024