Origin Energy’s CEO, Grant King, is concerned that Australian energy prices might triple over the next 10 years. According to an article in The Australian, Mr King thinks that there are many reasons to expect energy prices to skyrocket:
- Uncertainty over the federal government’s proposed Carbon Pollution Reduction Scheme (CPRS) resulting in investment in higher cost wind- and gas-powered generation;
- Mandatory targets for renewable-energy generation;
- Increased electricity transmission and distribution costs due to the need to invest in more infrastructure to support generation from renewables; and
- Higher input fuel costs (e.g. coal & natural gas).