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‘Consumers are paying as we transition’: Victorians foot the bill to transition to ‘green’ energy

Consumers are paying for the transition from traditional power generation to solar and wind, with costs of filling the gaps being passed on.

Emergency options are being increasing used to ensure stable supply, but it’s the consumers who are coping it, finding extra charges added to their bills to pay for it.

“A local businessman sent me a copy of his bill,” Neil Mitchell said.

“On it is a charge for $42.38 because extra power had to brought into Victoria in the summer.

“It is something called the ‘Reliability and Emergency Reserve Trader’.

“He’s got a letter from AGL telling him this was twice used to avoid blackouts.”

Chief executive of the Australian Energy Market Commission Anne Pearson told Neil Mitchell says the emergency option is very costly and they’re hoping the the Retail Reliability Obligation is due to come in mid-year, if it’s endorsed by all state and federal governments.

“We’re doing what we can at the technical and operational level to integrate those newer forms of generation, but at the same time, what we need at the policy level is some certainty on emissions reduction and energy policy,” she said.

“Victorian consumers have paid for the use of the emergency trader, it is very expensive, a very costly way to keep the lights on.

“The point is, our generation is changing, the power system is changing and consumers are paying as we transition.”

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