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The 2022 energy crisis: Fuel poverty and the impact of policy interventions in Australia's National Electricity Market

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  • Simshauser, Paul

Abstract

The war in Ukraine and associated 2022 energy crisis had far-reaching effects, with seaborne prices for coal and gas reaching multiples of their historic averages. While Europe was the epicentre, countries as far away as Australia were impacted. Governments across multiple jurisdictions have since orchestrated very material energy subsidies for households to reduce the adverse effects, with fiscal estimates across EU member states ranging from 0.5 to 7% of GDP. As a major energy exporter, the Australian Government took a different policy pathway by targeting the source of electricity tariff increases, viz. imposing price caps of $125/t and $12/GJ for coal and gas, respectively. Some state governments in Australia also revised their household energy hardship policies. This article analyses the level of fuel poverty before- and after- the array of Commonwealth and State policy interventions. Commonwealth policy had the effect of moderating forecast electricity tariff increases from 35% to 16.5%, which benefits all customers. However, State Government customer hardship policy remains vitally important and makes the dominant contribution in reducing fuel poverty.

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  • Simshauser, Paul, 2023. "The 2022 energy crisis: Fuel poverty and the impact of policy interventions in Australia's National Electricity Market," Energy Economics, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:eneeco:v:121:y:2023:i:c:s0140988323001585
    DOI: 10.1016/j.eneco.2023.106660
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    2. Magdalena Skrzyniarz & Marcin Sajdak & Monika Zajemska & Anna Biniek-Poskart & Józef Iwaszko & Andrzej Skibiński, 2023. "Possibilities of RDF Pyrolysis Products Utilization in the Face of the Energy Crisis," Energies, MDPI, vol. 16(18), pages 1-19, September.
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    4. Krzysztof Zagrajek & Mariusz Kłos & Desire D. Rasolomampionona & Mirosław Lewandowski & Karol Pawlak, 2023. "The Novel Approach of Using Electric Vehicles as a Resource to Mitigate the Negative Effects of Power Rationing on Non-Residential Buildings," Energies, MDPI, vol. 17(1), pages 1-36, December.

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    More about this item

    Keywords

    Electricity markets; Energy policy; Fuel poverty;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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