The real villains in Australia's renewables debacle? Three big energy companies
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Version 0 of 1. Industry minister Ian Macfarlane would not have believed his luck when the clean energy council (CEC) buckled to a 20% reduction in the renewable energy target (RET), diminishing the target from 41,000 gigawatt hours of energy to 33,500GWh. Related: Climate change: why the Guardian is putting threat to Earth front and centre | Alan Rusbridger Up until this point, Tony Abbott and his team had nowhere to go on this issue. They had made an absolute, pre-election commitment to retain the RET at the legislated 41,000GWh. The last thing they needed, given their leadership and policy difficulties, was to have to fight on yet another front, especially having promised to deliver “good government.” They were in no position to pick a fight they couldn’t win. After all, the vast majority of Australians support renewable energy. The government has become desperate to demonstrate where new growth, investment and jobs would come from, now the mining boom is clearly over. And yet the CEC let them off the hook, allowing them to claim that they didn’t “break another promise”, but merely gave ground towards the industry’s “preferred position”. They were on the ropes. Now a rejuvenated Macfarlane will rub the Australian public’s noses in it by holding out for an even lower RET. Let’s hope Bill Shorten and the opposition have the courage to stand firm. The Greens and most of the Senate crossbenchers would back them to block the government’s attempts to make the necessary legislative amendments to the RET. The real villains here, however, are Australia’s three biggest energy companies: AGL, Energy Australia and Origin. Abbott has been extensively “advised” by these companies. Surely it is in no small part their influence that led to the coalition setting up an inquiry into the RET, headed by climate change sceptic Dick Warburton. Interestingly, the inquiry found that the RET will drive down the price of power for consumers. Not a particularly helpful finding for a government that had been pushing the same tired line it did on the carbon price, that the policy is bad for consumers and would lead to higher power prices. The Coalition persisted, following more lobbying from the big three who control over 70% of the retail energy market in Australia. These companies made their positions absolutely clear: some wanted the RET scrapped altogether and others would be happy with a significant cut. Related: Who are really Australia's top climate polluters? | Graham Readfearn They knew weakening the RET would drive up the value of their fossil fuel assets, such as their investments in polluting coal fired power plants and coal seam gas mining. And, of course, it would limit new competition in the energy market, which lowers power prices for consumers, too. Let’s be frank, Origin, Energy Australia and AGL have significantly influenced the Abbott government’s ditching of its clear election promise to keep the RET at 41,000GWh. Their claim to support renewable energy while walking the corridors of power lobbying to undermine it smacks of hypocrisy. And, unlike the renewable energy-backed companies they want to undermine by attacking the RET, they’ve been getting away with screwing households on their electricity bills by hitting customers with almost obscene profit margins as energy retailers. But here’s the good news. The Australian public, the vast majority of us who support cleaner and cheaper power from renewable energy and are opposed to dirty coal and damaging coal seam gas, have the ability to reclaim control over our public policy. In order to stop vested interests like Origin, AGL and Energy Australia who have much to gain by halting the growth of renewable energy, all we need to do is switch our energy provider to a company backed by 100% renewable energy. Credit Suisse has found that, “a coordinated campaign targeting AGL’s electricity and gas customers and prospective customers could result in customer loss and costs to AGL.” And Citi Research recently said: We think there are early warning signs of negative connotations around Gloucester (CSG) impacting AGL in some retail customer segments. If these negative associations become more mainstream, walking away from/disposing of Gloucester may become the right option to protect the larger retail brand and earnings. So despite the CEC’s position strengthening Macfarlane’s arm, the battle is now well and truly on. Australian consumers can change the balance of power. We can stop the rollout of CSG, we can say no to dirty and polluting coal and we can save the key policies that we need to build the infrastructure for cleaner and cheaper power. Related: The argument for divesting from fossil fuels is becoming an overwhelming one | Alan Rusbridger It’s time for all of us to stand up and be counted. I urge you to consider joining me in withdrawing your custom from Origin, AGL and Energy Australia. These dirty companies are blocking Australia’s renewable energy future and clinging on to their misguided and outdated investments in expensive and dirty power. The more of us that switch to companies that genuinely support the RET and oppose CSG, the better we will make things for all Australian consumers, our communities and our environment. |