Anthony Albanese energy minister Chris Bowen has been called out on live TV after suggesting struggling Aussies should install solar panels on their roofs to cope with rising electricity prices.
In some states, electricity prices have risen 19 to 25 percent under a new market offer from the state energy regulator starting July 1. That’s despite the Albanian government’s election pledge to cut household energy bills by $275 a year by 2025.
On Monday evening, Sarah Ferguson, host of ABC 7.30, asked Bowen how families can best protect themselves against rising prices.
He replied, “I know the demand for solar energy is absolutely huge. By putting solar panels on your roof, you can save a lot on your energy bill.’
But Ferguson hit back and said, “That’s assuming you have the money to put those panels on your roof.”
Solar panels cost between $4,000 and $16,000 to install after various government rebates.
Several viewers also called out Bowen’s suggestion for solar panels on social media.
Switching to solar energy? Who pays the initial installation costs? Talk about out of touch,’ someone said.
A second added: “I was looking at solar power in my new home. The payback period is 15 years, so why should I do it? Cheaper to stick with my regular supply and use wood fire and gas to heat the house.’
A third said: ‘I don’t care if I offend Labor Party supporters but I found Chris Bowen’s 7.30 performance a waste of time and an insult to those who are struggling.
“Absolutely stunned when he told people that switching to solar energy was one way to cope with rising electricity prices this winter.”
Earlier in the programme, Ferguson asked the minister if he was ‘willing’ to still commit to the pledge to cut the bills by $275 – one of Labour’s key pledges in the last election.
‘Certainly. We were elected with a mandate to increase the share of renewables in our power grid because it’s better for emissions and better for bills and we’re 100 percent committed to doing that,” Bowen said.
‘And yes, the modeling showed the impact of that policy in 2025.’
He admitted that there were “very difficult international circumstances” affecting prices. Still, he remained steadfast that the government “did not walk away from the agenda we were elected to.”
“That’s the agenda, what about the commitment to lower prices in 2025?” Ferguson replied.
Bowen stressed that the government was ‘committed’ to investing in more renewables to drive down prices.
“As I said, we’re not walking away from our commitment to getting more renewables into the system and yes, they’re the cheapest form of energy available, the cheapest form of energy that’s ever been available and that does mean that electricity prices will rise are lower than they would otherwise be, absolutely,” he said.
He added that the government is considering a medium and long-term plan to reduce bills on top of the energy rebate.
Bowen was put to the test about rising electricity prices by TV presenter Sarah Ferguson (pictured) on ABC’s current affairs show, 7:30am
Anthony Albanese (pictured next to Chris Bowen) made a pre-election pledge to cut household energy bills by $275 a year by 2025
The ABC presenter asked if there was an overweight for ‘Central Australia’ as the reduction in utility bills primarily helped those households that struggled the most.
“We’re talking about a $500 to $1,000 increase in energy costs for people already struggling with cost pressures,” she said.
Now the Labor government came to power with broad support from central Australia. How much is this going to hurt you politically?’
Bowen argued that he was “not a political commentator” and that his job was policy-oriented.
“I am first and foremost a policy maker, not a commentator and my job is to present the right policy to the government, parliament and the people, which is exactly what I’m doing,” he replied.
“Yeah, there are, you know, all sorts of free commentary from an opposition that took four gigawatts of adjustable power out of the system and put only one gigawatt on it, which in no small measure has created a lot of pressure we have to deal with with now.’
This chart illustrates how energy prices will increase in a number of Australian states with the percentage increase and the extra amount it will add to an average energy bill in a year
“But as to your question about politics, Sarah, I think a lot of Australians look at this and know that the previous government messed it up, that there were 22 failed energy policies.”
“They know that energy prices are under pressure all over the world, but they see a government that is honest about that, but we also took action with the intervention we secured last year, which was a very substantial and controversial intervention, but was absolutely necessary for all the reasons you correctly identify.”
Bowen could not predict a time when bills would fall, as prices “fluctuated internationally” due to “pressure from Europe.”
When asked if there would be future increases in energy bills, Bowen said it would be determined by what was happening around the world, particularly the war in Ukraine.
Ferguson then asked, “Does that mean we should prepare for future price increases, further price increases?”
Bowen replied, “Well, let’s see what happens in Ukraine and Russia. Let’s see what’s happening across the board.”
It comes a month after the Australian Energy Market Operator warned that high electricity prices could “linger” in the country for years without significant investment in renewable energy to replace coal-fired power as it is phased out.