Article by Perry Williams, courtesy of The Australian
04.05.2025
Alinta, one of Australia’s biggest energy retailers, has called for an end to Labor’s multi-billion dollar energy rebates, declaring the current $1.8bn handout from the federal government should be its last.
While Alinta agreed Labor’s decision at this year’s federal budget to extend bill relief for households was “apt” in the current cost of living crisis, it said this was no way forward.
“Clearly we need to wean ourselves off subsidies and address the productivity issue over time,” Alinta chief executive Jeff Dimery told The Australian.
“It’s not sustainable in the long-run to be subsidising people’s energy bills.”
In a bid to offset an ongoing cost of living crunch, Labor announced in this year’s budget a $1.8bn, six-month extension to its energy bill rebate scheme which covers some 10 million homes and 1 million small businesses.
Despite energy bills being set to increase by up to 9 per cent next financial year, the Albanese government opted not to extend the $300 rebate for another year when it expires on June 30.
Instead, households and small businesses will receive $150 off their bill from July to December, with a two and a half year run of electricity subsidies to end in January 2026.
States have also jumped on the bandwagon with Labor in Queensland last year fast-tracking a $2.5bn energy rebate package that handed households an unprecedented $1000 of bill relief.
“But we need to find a way to make energy more affordable. You can’t remove the band-aid if you don’t get to the nub of the issue,” Mr Dimery said.
Labor’s energy policy is dominated by renewables and batteries along with back-up support from gas under the government’s Future Gas Strategy.
The Alinta chief said the mix of energy sources was needed.
“It is really a combination of renewables, batteries, pumped hydro but also importantly gas,” Mr Dimery said. “I think there has been an acknowledgment by the federal energy minister that gas has a vital role to play.”
Big energy producers said Labor’s landslide win meant it must prioritise boosting gas supply, concluding Australians did not support “reckless” Greens policies including a ban on new gas projects.
The Kerry Stokes-backed Beach Energy said the election result was a “rejection by the Australian people of the extreme Green agenda that was opposed to ongoing development of new natural gas fields to back up renewables and maintain energy reliability,” Beach chief executive Brett Woods said.
Industry group Australian Energy Producers said the Greens “cannot be allowed to continue to hold legislation to ransom in the Senate” in light of Labor’s comfortable majority.
“Australia has abundant gas resources, yet we face gas shortfalls this decade due to regulatory uncertainty, approval delays and policy interventions that have delayed new gas supply and damaged Australia’s investment competitiveness. Addressing these risks must be a priority for the new Parliament,” Australian Energy Producers chief executive Samantha McCulloch said.
Federal Environment Minister Tanya Plibersek used the cover of budget day to quietly announce that her decision on whether to allow Woodside Energy to continue operating the North West Shelf gas project out to 2070 would be delayed until after the election.
Mr Dimery argued the project must proceed.
“Hopefully now that we have a majority government in place, they can make decisive calls on things like the North West Shelf and we can move forward.”
Woodside Energy boss Meg O’Neill said Labor must now fully implement its Future Gas Strategy to underpin Australia’s energy security and ensure reliable and affordable gas supplies.
Iron ore billionaire Andrew Forrest appealed to Anthony Albanese to use Saturday’s resounding win to deliver on Australia’s build-out of renewables as Labor seeks to double green energy levels by 2030.
Labor has held tight to its ambitious pledge of doubling the current share of renewable energy to 82 per cent by the end of this decade with solar and wind replacing coal as the chief supply sources for the power grid.
“This term must drive the build out of renewables and heavy industry decarbonisation while working with regional Australians to create jobs and prosperity,” Dr Forrest said.
Meanwhile, a major investment group has demanded the new Parliament commits to a strong 2035 emissions reduction target within its first 100 days amid pressure to keep pace with a net zero goal by 2050.
Labor plans to cut emissions by 43 per cent from 2005 levels by the end of this decade, but has yet to set a 2035 target.
The Investor Group on Climate Change demanded such a goal: “Setting a target within the range advised by the Climate Change Authority will help investors get the confidence they need to invest in new renewable energy and other climate solutions in Australia,” the IGCC said.
Western Australia’s powerful resources industry wants environmental law reform to boost investment in the mining sector.
The Chamber of Minerals and Energy – whose members including BHP, Rio Tinto, Fortescue, Woodside and Chevron – had been at loggerheads with the government over so-called nature positive laws and said reforms were needed.
“Streamlining and accelerating federal environmental assessments goes to the heart of reversing the recent decay in Australia’s investment fundamentals,” CME boss Rebecca Tomkinson said.