The government’s long-awaited energy plan has rejected Chief Scientist Alan Finkel’s Clean Energy Target, which focused on subsidies for renewables, in favour of a National Energy Guarantee (NEG). The government has promised affordability and reliability, as well as compliance with Australia’s international climate obligations.

Energy Security Board chair Kerry Schott headed a group of energy experts charged with developing a scheme, the details of which are now being modelled.

She says the states and territories will have a degree of flexibility in how they legislate on emissions reduction targets. “Depending on where their emissions target, is that will dictate within their region what reliability they need.”

Schott, who is also a director of NBN Co, said she acknowledges it is “not 100% perfect”. But she is confident it is financially viable. On consumer unhappiness, she said: “We do take these complaints very seriously and are working on correcting it.”