Victoria is on the brink of a power crisis. It is vital to understand our energy consumption, but we also need to ensure that energy is distributed in a way that gives all users a reliable provision of electricity
The Victorian government is faced with the task of achieving a balance between consumption needs. We can’t rely on a centralised energy network to meet our power needs. The government is strongly focused on achieving a 40 per cent renewable energy target by 2025.
The problem here is we cannot be certain renewables can harmonise with current baseload electricity, and nor can we be sure renewables will generate enough electricity reliably. Not only that, but consumers shouldn’t cop higher rates because of the government’s principles.
Electricity bills are set to go through the roof. Farmers are already starting to get notices that their rates will skyrocket by more than 40 per cent next year. What makes it worse is that many major retailers are slashing the price of their product to win a marketing war and attract customers.
This is putting pressure back along the supply chain and being felt the hardest at the farm gate.
I’m concerned about a perfect storm where energy costs eat into our profit margins as just another concern for sustainability along with red tape, water and cost of labour. And then there is the escalating risk of blackouts, which the Australian Energy Market Operator has confirmed will likely affect Victoria over the next two years.
Farmers abide by strict animal welfare guidelines, and the prospect of blackouts – particularly during summer – is a cause for real concern.
My biggest concern is the government will privilege the electricity needs of metro areas over farmers, because of the strong concentration of votes in the city.
The VFF will be very clear with the government that blackouts for farm businesses pose a real threat to their viability and, in turn, the profitability and productivity of the entire state.
Imagine dairy farmers who need to keep their milk refrigerated at 4C. Or chicken growers who are unable to keep their chickens cool at 24C-25C.
We cannot reach a point where that situation is allowed to occur. The state government has a small window to fix the problem. It needs to act now.
