Document yevvvgrq45opxBmRNO6L0j8E

To: Jackson, RyanOackson.ryan@epa.gov] From: Fannon, Frank Sent: Mon 7/17/2017 9:43:16 PM Subject: FYI article on Finkel review and issues.pdf Ryan- The article attached might be of interest. Also, http://www.fiiiancemiiiister.gov.aii/. Mathias was involved in the G20 deliberations with the PM. The Ambassador is on vacation this week and next. Recommend we coordinate an introduction after he returns. Regards, Frank Frank Fannon BHP Billiton 1455 Pennsylvania Ave, NW Suite 610 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00002782-00001 Washington, DC 20004 Office: +1 202 383 4440 Direct: +1 202 383 4441 E: fraTilc.farmon@bhpbilIiton.com W: www.bhpbilliton.com This message and any attached files may contain information that is confidential and/or subject of legal privilege intended only for use by the intended recipient. If you are not the intended recipient or the person responsible for delivering the message to the intended recipient, be advised that you have received this message in error and that any dissemination, copying or use of this message or attachment is strictly forbidden, as is the disclosure of the information therein. If you have received this message in error please notify the sender immediately and delete the message. 17cv1906 Sierra Club v. EPA 6/22 Production ED 001523 00002782-00002 UIUL 15 Jul 2017 Weekend Australian, Australia Author: Judith Sloan Section: Inquirer Article type : News Item Audience : 227,465 Page: 15 Printed Size: 746.00cm2 Market: National Country: Australia ASR: AUD 24,362 Words: 1870 Item ID: 810707071 (^isentia.mediaportal nergy to Frydenberg Prices are rising and so is the confusion over policy JUDITH SLOAN CONTRIBUTING ECONOMICS EDITOR Page 1 of 3 My guess is that Environment and Energy Minister Josh Frydenberg doesn't know whether to laugh or cry. He is in the middleof trying to sort out a series of energy probiemsthat are not of his making but that arecausingsubstantial painto businesses and households. From this week, retail electricity prices for households will rise by between 15 per cent and 20 per cent in most of the eastern states. Retail gas pricesatsowilt rise by a slightly lower percentage. We already have seen residential power disconnections rise by 140 percent in the past six years. We should expect many more disconnections For businesses, the situation is worse; they are facing even steeper rises in their power bills. For those ope rat ions that usegasdirectly, theirannual gas bi 1 Is wil 1 be two to three times higher than last year. That's if they can secureany deal i n the context of a shortage of domestic gas, I n the meantime, the debate about securing the three objects of energy po i icy -- affordabi 1 ify, reliability and sustainability (achieving emissions reductions)--conti nues to provokestrong and conflicting views, including among politicians, commentatorsand energy providers. On one side of the debate is the assertion that rising electricity pricesare not related to the increase i n the penetration of renewableenergy but are the result of rising gas prices. The proponentsof this argument point out that electricity price increases have been higher in Queensland, which has very little renewable energy, than in South Austral ia, which has a lot (close to 50 per cent of its generating capacity). But the fact electricity 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00002783-00001 15 Jul 2017 Weekend Australian, Australia Author: Judith Sloan Section: Inquirer Article type : News Item Audience : 227,465 Page: 15 Printed Size: 746.00cm2 Market: National Country: Australia ASR: AUD 24,362 Words: 1870 Item ID: 810707071 ' It II I 1} M < zy. You may only copy or communicate this work with a licence. He wants Page 2 of 3 irinding i halt nergy poverty 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00002783-00002 15 Jul 2017 Weekend Australian, Australia Author: Judith Sloan Section: Inquirer Article type : News Item Audience : 227,465 Page: 15 Printed Size: 746.00cm2 Market: National Country: Australia ASR: AUD 24,362 Words: 1870 Item ID: 810707071 ' It II I 1} M < zy. You may only copy or communicate this work with a licence. Page 3 of 3 provided through renewable energy certificates. The bottom I iine is that energy policy in thiscountry has reached the point of catastrophe. Faced with cripplingelectricity pricesanduncertainsystem reliability, there isstill no agreement atout the appropriate d i rect io n of po i icy i into i he future. If anything, the divergence between the federal government and some state governments is as wide as ever. And all the talk of demandside measures issimply code for asking people (and businesses) to desist from using power when it is actually appropriate for them to do so--during a heatwave, for instance.Ihis is not a featureof a First World developed economy, I n the meantime, well-heeled households are subsid ised to spend up big to installsolarPV with battery backup, meaning that the cost of operating the grid is shared acrossa smaller number of pa rt icipants. T his drives up prices further for those who can least afford to pay. They call it energy poverty in Europe; expect that term to become common parlance here. For Frydenberg, his test hope is that domesticgaspricesstart to toll by virtue of the restrictions o n expo rts a nd so me reg u lato ry changes affecting pipeline operation. But there can be no guarantees. Gassuppliesarenot someth! ng you can simply switch on and off. And unlike hard rock m I ni ng, gas requ i resan ongoi ng program of dr i 111 ng to replace expiring wells. Without strong financial incentives, the Australian government may find that some of thegascompaniessimply decide that it is easier to pick up their bat and ball and go home. The bottom line is that energy policy in this country has reached the point of catastrophe BILL PAIN Annual retail electricity price increase,adjustedforinflation pc mi u bi^'o'MNrr.riGNG Number of households cut off 0 --,------------,-------------,------------,------------,------------,------------r 2009-10 10-11 11-12 12-13 13-14 14-15 15-16 Source: AES, Australian Energy Regulator, Victorian Essential Services Commission, WAEconomic Regulation Authority 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00002783-00003