The Australian Energy Market Commission (AEMC) Residential Electricity Price Trends 2025 report released today highlights the mess that the part-time Climate Change and Energy Minister is making with our energy transmission.
The AEMC claims that electricity prices will magically fall by 5% over the next five years and then increase by 13% in the subsequent five years.
The AEMC report is based on more fantasy than fact. It’s finding that prices will fall is based on a drastic build out of new wind and solar generation yet it is clear that this will not occur.
Just yesterday the Victorian Auditor General released a report showing that Victoria’s goal of having two gigawatts of offshore wind by 2032 will simply not occur.
Similarly, the recent AEMO Transition Plan for System Security report indicated the sheer incompetence of the renewable rollout means transition is delayed.
The AEMC report assumes that coal generation will cease as originally planned – yet state governments in eastern Australia are extending the life of existing coal generators.
Chris Bowen keeps say that renewables are the cheapest form of energy – so if that is true how does the AEMC justify a 13% increase in electricity prices in five years time when Labor says Australia’s electricity will be 82% renewable.
The report does not factor in the delays and the cost blow outs that are occurring with the construction of new transmission lines and new wind and solar capacity.
Last year the AEMC report forecast that electricity prices would fall by 13% over the next ten years. Instead, in the last 12 months to October alone they have risen 37%.
The AEMC report models assumptions based on Labor’s policies rather than factual data grounded in reality.
ENDS
Contact: Phil Connole E | philip.connole@aph.gov.au
