What is Australian government doing to slash power bills?

Follow us on Google News:
 What is Australian government doing to slash power bills?
Image source: © 2022 Kalkine Media®


  • The AEMO has suspended some of the solar and wind energy projects as the power crisis worsens in Australia.
  • The central government is making efforts to upgrade the electricity grid to renewable energy.
  • The government has also enforced support payments alongside state-sponsored payments.

The electricity crisis in Australia has taken a new turn as the Australian Energy Market Operator (AEMO) temporarily suspended some of the solar and wind energy projects. The dwindling supply of electricity forced the AEMO to take this decision. With rising power bills and looming risks of a blackout, most people could face harsher conditions in the Australian winter.

However, the government has recognised the urgent need to prevent Aussies from the ongoing crisis. The government’s plan of action includes several parameters, ranging from rebate programs to supply boosting measures.

Some people have taken matters into their own hands and have started to generate their own electricity via residential solar panels. These solar panels have become a common source of power generation over the recent years, providing some relief from the shooting electricity prices. However, the population depends on the national electricity grid, and so, the soaring electricity prices have become one of the  government’s top concerns in the current scenario.

DO NOT MISS: ASX 200 edges higher; financials recover, energy, utilities down

Several measures have been taken by the central and state governments to ensure that Australians are not locked out of the energy supply mechanism. Let us now discuss a few such measures introduced by the government:

ALSO READ: Recession fears stalk US markets: How worried should Australia be?

Focusing on renewables

The Labor government has promised to find a solution to the ongoing crisis as soon as possible. In fact, the Anthony Albanese-led Labor government has been quite vocal about the country’s shift to renewable energy.

While the government has negotiated with the gas providers to increase the supply, it has not ruled out the possibility of facilitating a drastic shift in the way electricity is supplied across Australia. However, Australia’s power grid needs an upgrade to become compatible with renewable energy. Meanwhile, it seems imperative that fossil fuel extraction should be approved based on merit. Energy Minister Chris Bowen is also participating in discussions to seek solutions for the prevailing energy crisis.

Slashing prices

The government has offered to cut electricity bills by AU$275 per year, a promise made by the Labor party during its election campaign. The government pledged to slash power bills after the Australian Energy Market Operator (AEMO) took over the power grid to guarantee supply.

The AEMO has also triggered the Gas Supply Guarantee Mechanism for the first time since it was introduced in 2017. The measure was taken to secure gas for power generators and ward off a potential shortfall in southern states.

Proposing a capacity mechanism

The government has also proposed a "capacity mechanism" that makes existing coal and gas power plants eligible for extra peak period payments, provided they guarantee capacity in the electricity grid. A draft plan has been prepared by the Energy Security Board of regulators, which says that the scale of investment to retain the reliability of supply over the coming decades is dramatic.

Coal-fired power plants and renewable energy providers would be eligible for payments under the proposed plan. Critics argue that this plan could delay a move to a low-emissions electricity system.

Introducing energy support payments

  • Utilities allowance: The utility allowance can be availed by those who claim the Disability Support Pension and are younger than 21 years with no dependent children. Single individuals receive AU$170.30 per quarter, and those in a couple receive AU$85.15 each.
  • Centrepay: Those who receive Centrelink payments can arrange for regular amounts from their payments to be transferred to pay their EnergyAustralia bill. The Centrepay service can be availed to conduct the same.
  • Support offered by states: State governments have offered a range of benefits for consumers-

State-enforced support payments.



The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK