FAQ: The National Energy Guarantee and Lowering Power Prices

August 14, 2018

FAQs: What is the National Energy Guarantee, and what does it mean for power bills?

Australian families and businesses are paying too much for energy. We want to lower your powers bills and guarantee that families and businesses have reliable energy.

That’s where the National Energy Guarantee (or NEG) comes in.

Here is a simple explanation of how it works and what it will mean for you and your family:


What is the National Energy Guarantee?

The National Energy Guarantee ensures there is enough investment in reliable power in order to lower your power bill.

Electricity retailers across the National Energy Market will have they have enough supply to meet reliability targets while also lowering emissions over time.

The NEG will lower electricity prices, make the system reliable, encourage the right investment, and reduce emissions without subsidies, taxes or trading schemes.


Will it lower my power bills?

YES. The NEG, combined with other policies, will lower power bills by up to $550 every year for families, and even more for businesses.

Our policies are already delivering: In the three months to June electricity prices fell 1.3% and gas prices fell 2.2% across the country while retailers further reduced prices in some States from July, with others expect to by the end of the year.


What role does technology play in the National Energy Guarantee?

The NEG is technology neutral. It will create a level playing field across solar, wind, coal, gas, batteries or pumped storage.

The market will work out the right mix to get the reliable power it needs to bring down prices. For example: coal, gas, hydro and biomass will be valued for their reliability while wind, solar and hydro will be recognised as lower emissions technologies but will no longer be subsidised.

We are not pro- or anti- any technology. We are pro-customer, we are pro-Australian families and Australian businesses. We are pro-lower prices, that’s what all this is about, cheaper electricity.

What else is being done to lower energy bills?

We are acting across the energy market:

 - Getting better deals from retailers (remember to check out www.energymadeeasy.gov.au to compare energy offers from gas and electricity retailers to make sure you are on the best deal)

 - Securing gas for domestic users first

 - Fixing the rules to stop networks gaming the system

And our plan is working: In the three months to June electricity prices fell 1.3% and gas prices fell 2.2% across the country.

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