George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Hansard source

Thank you very much indeed, Senator Bushby, for a timely question. In response to Senator Kitching I did mention the announcement lately made by the Prime Minister and Mr Frydenberg, but let me give you some more details. As I said to Senator Kitching, based on the advice of the Energy Security Board, it is expected that the National Energy Guarantee will lead to a reduction in the typical household bill of between $110 and $115 per year over the 2020-2030 period. The guarantee is made up of two parts that will require energy retailers across the National Electricity Market to deliver reliable and lower emissions generations each year.

A reliability guarantee will be set to deliver the right level of dispatchable energy from ready-to-use sources such as coal, gas, pumped hydro and batteries needed in each state. It will be set by the Australian Energy Market Commission and the Australian Energy Market Operator. An emissions guarantee will be set to contribute to Australia's international commitments. The level of the guarantee will be determined by the Commonwealth and enforced by the Australian Energy Regulator. The National Energy Guarantee will lower electricity prices, make the system more reliable, encourage investment and reduce emissions without subsidies, taxes or trading schemes. The age of subsidies is over.

This technology-neutral policy based on engineering and economics brings together the best advice from the AEMC, the AEMO and the AER to level the playing field and deliver the best mechanism for our future energy supply.