Monday 29 October 2018
Daniel Andrews and Labor: A recipe for higher power prices
Daniel Andrews is recycling his tax increases as subsidies for rooftop solar for the rich while forcing up power prices for those who cannot afford it.
The absurd irony of this subsidy is that Andrews introduced the $1.24 billion subsidy to try and offset the increase in electricity prices that he generated by his closure of Hazelwood.
As Daniel Andrews admitted to CEDA on August 15, under his government electricity prices had gone up by 20 per cent over the past year.
His government’s actions are a direct cause of the massive hike in electricity prices. He tripled taxes on brown coal, directly leading to the closure of the Hazelwood power plant.
Now, an independent report by the Grattan Institute has revealed that Daniel Andrews is only going to make matters worse with two policies that will increase energy prices.
First, his scheme to subsidise solar panels for Victorian households is a recipe for higher power prices and higher taxes.
“Subsidising solar panels will reduce electricity costs for the benefiting households – but at significant cost to taxpayers at large,” the report states.
Basically that means the less well-off will be subsidising the wealthy.
The Grattan Institute says that Daniel Andrews should “abandon” his plans to subsidise more solar panel installations.
Labor have already introduced or increased 12 taxes over the past four years.
The question is what further taxes will Daniel Andrews introduce to pay for his $1.24 billion scheme?
Second, the Grattan Institute says that his ban on conventional gas exploration should be lifted because it “will increase prices.”
Because of Labor’s ban on conventional gas exploration, Victoria is likely to produce less gas than it consumes from 2022.
When supply is reduced, prices go up. The solution to higher gas prices is to increase the supply of gas, not place a ban on finding more natural gas.
The ACCC has found that Victoria expanding gas production would lower consumer gas prices by between 18 and 50 per cent.
The only way for Victorians to get back in control of their electricity and gas bills is to cut the cost of Labor by voting for Matthew Guy and the Liberal Party on November 24.