Shifting Political Landscape Impacts the Domestic Energy Sector
When Anthony Albanese was elected Prime Minister in 2022, he did so with a strong endorsement of promised climate change action. The recent Queensland election suggests that the voting public has become disillusioned with Labor’s plans. The sentiment also extended to a swing against the Greens. A tighter economy, soaring power bills, distrust of renewable targets and cost of living pressures are taking a toll on Australian households. We are at a crossroads on Australian Energy Policy.
In this Contact Insights note, we consider where Energy Policy and Economics collide. We are bullish on Australian listed Energy companies and are overweight the sector. While we are advocates for sensible climate change outcomes, we see little commonsense in Australia’s current policy settings. The recent power outage in Broken Hill is a stark reminder of what can go wrong. We expect the Australian Energy Transition to take far longer than originally planned which we believe will result in a better-than-expected outcome for many listed companies.
