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What does the Hazelwood Power Station closure mean to you?

The Hazelwood Power Station is closing.

What do we do next? Are Prices going to increase? And what should you do about it?

Hazelwood closure

Electricity prices on the rise

Tens of thousands of Victorian households are facing steep hikes in their power bills this year. This is partly because of the looming closure of the Hazelwood power station. Consumer advocates warn the price spike could add up to $300 extra for the average annual household electricity bills. They have urged people to shop around for the best deals. Retail electricity prices for households on standard offers will surge by up to 11.5 per cent and gas prices by up to 9 per cent.

Premier Daniel Andrews predicted domestic electricity bills were likely to be 4 to 8 per cent higher as a result of Hazelwood’s closure. This is based on government-commissioned analysis. Source ABS.net.au

Load generation decreasing

According to consumer advocate St Vincent De Paul society spokesperson Gavin Duffy. “We have had Hazelwood shut down, so there is a lot of base load generation exiting the market and that will lead to increases in electricity prices, which the government has modelled”.

The Clean Energy Council Chief Executive Kane Thornton said of the Hazelwood closure announcement that it marks symbolic shift from old to new energy. “Like a car, the older these power plants get, the more it costs to keep them running and the less reliable they become. A large proportion of our coal plants are already at or beyond their expected retirement date, and they will close one way or another in the decades to come,” Mr Thornton said.

New Technology leading the way

Many people are starting to believe that we are in an energy transition and that change comes with challenges. For example, what will replace what is the currently being produced? Will we need a new station or rely on the current infrastructure?

Our energy system is oversupplied with outdated coal plants, and the withdrawal of Hazelwood will not impact the reliability of the system. The renewable energy technology available right now is very reliable, as well as being the cheapest type of new generation. Battery storage affordability is making this new technology a reality for many Australians. Combined with Australia’s commitments to reduce emissions in line with the UN climate agreement reached in Paris last year, renewable energy has a very important role to play in our future.

What can you do?

Australia is moving from a coal based power system to a modern one based on the latest renewable energy and battery technology. Is it time to start moving to a more battery based system giving everyone more control in what happens with electricity supply and the environment.

Whatever happens we need to look at what this means to you, especially when it comes to electricity bills. As far as we see it there are several choices that you can have.

  1. Solar as an option for reducing your energy bills.
  2. If you currently have solar, adding batteries to that system will help you take control and reduce the peak time usage.
  3. Shop around with different retailers to get the best price.