Only a complete overhaul will improve energy security

The Electrical Trades Union (ETU) says operational failings of the energy system in parts of Australia will only be overcome by dismantling the National Electricity Market. National Secretary Allen Hicks said the national market is a complete failure, which has been highlighted by recent extreme weather across many regions.

“Since the National Energy Market was introduced power prices have skyrocketed, and now we are seeing ever-increasing incidences of the operator not being able to ensure generation supply.

“This heatwave wasn’t an unexpected natural disaster. It was forecast well in advance, along with the increased power demands it would bring, yet the National Energy Market that serves most of Queensland, New South Wales, Victoria, South Australia and Tasmania appears unable to fulfil its job of providing reliable power for consumers.

“The inability — and in some cases deliberate refusal — of the Australian Energy Market Operator and privately owned electricity generators to meet projected demand reveals the fundamental weakness of an electricity network driven by financial interest rather than the public interest,” Hicks said.

He said that a recent statement from South Australian Premier Jay Weatherill which outlined an option to “completely nationalise the system” was a welcome one, suggesting that all available options should be considered.

“The Turnbull government has used previous failings with the energy market to attack renewable energy, but today’s power crisis confirms that it is weaknesses in the system as a whole, rather than the specific generation mix, that are largely to blame.

“If the state with the lowest proportion of renewable generation still can’t guarantee that consumers won’t face forced power cuts on days of extreme heat, it puts paid to the fallacy that renewables are to blame and demonstrates clearly that there is a bigger problem that the federal government must fix,” Hicks said.

He sees privatisation as contributing to the current instability and says that returning essential services to the public sector may improve the situation.

“The current system relies on the market operator begging private companies to increase their generation capacity, but these businesses can and often do refuse, putting their bottom line ahead of the community’s needs.

“It’s time to seriously talk about taking back our energy system into public hands,” he said.