Electricity generator Alinta Energy’s chief executive Jeff Dimery told the Australian Financial Review’s energy and climate summit that retail electricity prices may increase by more than 35% next year.
Dimery said the projection was based on current forecasts and ongoing costs, and would place further pressure on households already struggling with the cost of living.
Related article: European gas prices skyrocket after Russia cuts pipeline
“When we run our modelling for energy pricing next year, using the current market prices, tariffs are going up a minimum 35%,” he said.
“Now, maybe, the regulators are going to change the rules on that, I’m not sure.”
While the Russia’s invasion of Ukraine has increased energy costs worldwide, Dimery said rising wholesale prices also reflected Australia’s transition from fossil fuels to renewables.
Alinta plans to close its Loy Yang B coal-fired power station in Victoria, which produces 1GW of power, replacing it with offshore wind and pumped hydro.
“What cost me $1 billion to acquire is going to cost me $8 billion to replace, so let’s talk about that and [someone] explain to me how energy prices still come down,” Dimery said.
“I don’t get it. I am missing something?
Related article: Origin profits jump 30% on back of LNG, oil prices
“If you look at all the development that has occurred up to this point—and what needs to happen between now and even 2030—I get concerned,” Dimery said.
“I get concerned about the $60 billion of development that is required in Queensland. I get concerned about the $20 billion AGL has flagged.”
