Media Releases

WHEN A GUARANTEE IS NO GUARANTEE

October 17, 2017

Malcolm Turnbull has refused to guarantee his policy – the so-called National Energy Guarantee – will actually lead to a fall in power prices. It’s a guarantee without a guarantee!

 

The Turnbull Government today has confirmed that Cabinet has adopted a national energy policy without any economic modelling or a Regulatory Impact Statement.

 

That Coalition is now in its fifth year of government  – five years of policy uncertainty when it comes to energy and climate change – and still has not got around to having any economic modelling or a RIS completed before the Cabinet signed off on this policy.

 

That’s Malcolm Turnbull and Scott Morrison’s version of evidence-based policy making.

 

Today in Parliament the Prime Minister, Energy Minister and Treasurer could not point to any economic modelling being done or a Regulatory Impact Statement being prepared.

 

Earlier, the Chairman of the Australian Energy Markets Commission confirmed that economic modelling had not yet been done on the National Energy Guarantee.

 

PIERCE: So off the back of this work, the Commonwealth Government will be asking the AEMC to do detailed analysis and modelling of this specific proposal in the lead-up to the discussions at COAG where we would provide, if you like, firmer estimates of those price effects. The price numbers you're referring to are based off, if you like, analysis and modelling of the market and the alternative schemes that we've looked at in the past. It is an average over the ten years. The more detailed work will give a profile.

 

In Question Time, the Treasurer confirmed that Cabinet had signed off on the energy policy without a Regulatory Impact Statement in breach of the Government’s own guidelines.

 

 

https://www.pmc.gov.au/sites/default/files/publications/003-AG-Preliminary-Assessment-Form.pdf

 

It’s quite extraordinary that the Turnbull Government has signed off on its latest energy policy without economic modelling and therefore not being able to guarantee a supposed guarantee.

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