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Electricity politics

By David Leyonhjelm - posted Monday, 9 October 2017


Despite my pitch, I also don't expect Labor to drop the emissions reduction commitment or its ruinous policy for renewables to provide 50 per cent of electricity generation by 2030, up from the currently mandated 17 per cent. Labor fears losing votes to the Greens more than they fear mainstream voters waking up to the conflict between low electricity prices and a high market share for renewables.

So an incoming Labor Government would continue to face an electricity price crisis, would stick to its mantra on renewables, would be unable to avoid blackouts, and would be voted out after one term.

Eventually, enough voters will see the conflict between low electricity prices and too many renewables, and a major party will respond by dumping emission reduction commitments and mandates for renewables. When it does, it will win government.

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Good electricity policy need not be bipartisan. If one party sticks with a crazy electricity policy, the best recipe for certainty is a contest of policies leading to the long term consignment of the party with the crazy policy to the opposition benches.

We will eventually get a government that relieves us of high electricity prices, but it might take a while. First, voters need to be convinced.

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David Leyonhjelm is a former Senator for the Liberal Democrats.

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