In 2015, AGL said its 50-year-old Liddell Power plant in the New South Wales Hunter Valley region would shut at the end of 2022, but has pushed this back to 2023 to prevent summer blackouts during the 2022/2023 hotter months.
It sounds fine on paper - but what does it mean for you and your energy bills?
As Carl Kitchen from the Australian Energy Council reports, the major issue with this closure is the lack of planned replacement to meet energy needs. This closure, and subsequent delays or mixed messages about the use of coal continue to present a volatile market, with modelling by the Liddell’s taskforce suggesting an impending rise to the cost of energy in the near future.
The Liddell Taskforce found the modelling suggested Liddell’s planned closure could lead to a NSW wholesale price increase from the low $60s/MWh in 2022 to $75-$80/MWh in 2023–24, depending on the market response to deliver new capacity.
So with an anticipated rise in energy costs, what can you do to protect your business from the rise?
Lock in a new energy agreement in advance. Forward contracting allows us to secure you the rate and terms of your energy with your new or existing energy provider, allowing you to take advantage of the current lower cost per MWh. It’s simple to do with your dedicated Choice Energy broker. Learn more about forward contracting here.
2. Lower your reliance on grid energy by investing in commercial grade solar power.
For many businesses, the cost of a new, efficient solar system is equal to or less than what they are paying on their energy bills each month, making it a cash flow friendly investment. And once your system is paid for? Solar energy is free, as your system generates it for you right there on your roof. With businesses across Australia and New Zealand saving thousands each month thanks to their Choice Energy solar solution, you’ll be in good company.
Like any other volatile market, it is essential to act quickly when it comes to preventing forecasted change. Reach out today to speak to an energy management specialist at Choice Energy on 1300 304 448 today or contact us here.