Energy Policy

A non-partisan analysis of how government decisions have shaped Australia's energy system

Energy Prices in Australia

Few issues affect Australian households more directly than energy prices. Over the past two decades, electricity prices have risen dramatically, with the average household now paying more than double what they did in 2000 in real terms.

It's essential to cut through the partisan blame game and provide an objective analysis of how we got here. This means acknowledging policy failures across the political spectrum and focusing on evidence-based solutions.

The Energy Price Journey (2000-2025)

This timeline tracks electricity price increases and maps them against key policy decisions made by different governments.

● Coalition Government Policies ● Labor Government Policies ● State Government Policies

Breaking Down Your Power Bill

Understanding the components of your electricity bill is crucial to recognizing what's actually driving price increases:

  • Network costs (40-50%): The poles and wires that transmit electricity to your home. This component saw the largest increases between 2007-2013.
  • Generation costs (30-35%): The cost of producing electricity at power plants. These costs have fluctuated significantly, particularly as coal plants closed.
  • Retail margins (10-15%): What retailers charge for billing, customer service and their profit margin.
  • Environmental scheme costs (5-10%): Including renewable energy targets and energy efficiency programs. Despite political focus, these have been a much smaller contributor to price increases.

Contrary to common political narratives, environmental policies have not been the primary driver of electricity price increases. Network costs and generation market issues have had far greater impacts.

Key Policy Decisions That Shaped Today's Prices

Network "Gold-Plating" (2009-2014)

State-based regulators approved massive investments in electricity networks, with consumers bearing the cost.

Implemented by: Primarily Labor state governments in NSW and QLD

Impact: +40-50% to retail prices

Alternative approach: Performance-based regulation with stronger consumer representation could have prevented unnecessary spending.

Hazelwood Power Station Closure (2017)

The sudden closure of this major coal plant with only 5 months' notice created a supply gap in the market.

Circumstances: Closure announced under Victoria's Andrews Labor government with no federal transition plan in place

Impact: +10-20% to wholesale prices

Alternative approach: A planned transition with longer notice periods and replacement capacity secured before closure.

Gas Price Crisis (2016-2018)

The opening of LNG export terminals in Queensland connected our domestic gas market to much higher international prices.

Responsibility: Both major parties supported unrestricted LNG exports

Impact: +15-25% to wholesale electricity prices

Alternative approach: A domestic gas reservation policy like Western Australia's would have protected consumers.

Climate Policy Uncertainty (2010-2020)

A decade of policy reversals, abandoned mechanisms and partisan conflict deterred investment in new generation.

Responsibility: Both major parties through different mechanisms

Impact: Investment uncertainty leading to inadequate new supply

Alternative approach: Bipartisan long-term framework with policy stability to enable proper investment planning.

How Prices Vary Across Australia

Energy prices vary significantly by state, reflecting different generation mixes, network costs, and state-specific policies.

Click a state for more information

Beyond the Blame Game

The evidence shows that Australia's energy price increases can't be blamed solely on either major party. Instead, they reflect systemic issues in our energy market design and governance:

  • Regulatory failures: A system that rewarded network companies for spending more rather than optimizing efficiency
  • Poor transition management: Failure to plan adequately for inevitable coal plant closures
  • Policy instability: Partisan approaches that created investment uncertainty in a sector requiring long-term planning
  • Market design flaws: Rules that didn't adequately account for renewable integration or encourage storage development

The most severe price impacts have occurred when hasty responses were required to address previous policy neglect—a pattern that has repeated across governments of both persuasions.

Your Energy Future

Your independent representative, should:

  • Advocate for a stable, bipartisan energy framework that provides investment certainty
  • Push for stronger consumer representation in network spending decisions
  • Support well-managed transition planning for remaining coal plant closures
  • Demand greater transparency in retail pricing and stronger competition measures
  • Work to ensure energy market bodies are accountable to consumers, not just industry
  • Call for a domestic gas reservation policy to protect manufacturers and electricity generators

I believe affordable, reliable energy is essential for Australian households and businesses. Rather than engaging in ideological battles, focus on pragmatic, evidence-based policies that actually deliver results for consumers.