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The National Energy Guarantee: The only way to keep Australian manufacturing competitive

The Australian Steel Institute (ASI) supports the National Energy Guarantee (NEG)—it will deliver more reliable, affordable power to Australian industry and consumers, while meeting Australia’s national emissions targets. As such, the ASI is urging that partisan interests be set aside for the greater good of the country and that all levels of government support the NEG.

ASI Chief Executive Tony Dixon said, “The ASI strongly supports the National Energy Guarantee, and its aim to reconcile the competing objectives of affordability, reliability and emissions reduction.”

“It is vital for Australian industry and consumers that the critical issue of access to energy is resolved, and that stable bi-partisan policy is put in place—policy that provides the foundation for long-term investment in Australia’s electricity sector. If all levels of Government fail to support the NEG, Australia will continue to drift in a policy void, making the situation infinitely worse.”

“Electricity prices have more than doubled over the past decade. Energy is a major cost to all businesses and, as a trading nation, rising electricity prices are a major threat to Australia’s competitiveness.”

“Over the last two years from 2016 to 2018, major manufacturers have seen their electricity costs rise by over 90%, with gas costs more than doubling for many over the same period.”

“A significant reason for these increases is policy failure. Successive Australian governments have failed to put in place an adequate transition plan that maintains affordable and reliable base load electricity generation while reducing emissions. The NEG is a critical step towards resolving this.”

“If the NEG is not implemented, high, volatile electricity prices will continue, and there will not be adequate investment to deliver the clean, affordable and reliable power that Australian manufacturers need to remain competitive.”

The ASI acknowledges and applauds the work the Energy Security Board (ESB) has carried out to date in progressing towards a workable policy.

Posted On: 7 Aug 2018

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