VNI-West blowout means 'Rewiring the Nation' must be dumped for energy affordability and justice for farmers - Media Release

DR ANNE WEBSTER MP

Shadow Minister for Regional Development, Local Government and Territories
Shadow Minister for Regional Communications
Member for Mallee

VNI-West blowouts means ‘Rewiring the Nation’ must be dumped for energy affordability and justice for farmers

Friday 1 August 2025

Mallee residents – both energy customers and farmers alike – should be protected by Labor dumping its ‘Rewiring the Nation’ plans, Member for Mallee Dr Anne Webster said today after the latest massive blowout in the cost of the Victoria – New South Wales Interconnector – West (VNI-West) transmission project.

“The Australian Energy Market Operator (AEMO) released a report late this week indicating VNI-West could cost up to $11.4 billion, a huge increase on the $3.6 billion in the 2024 grid blueprint,” Dr Webster said.

“Labor’s radical rewiring plans are now an evident failure after VNI West recently also pushed back its completion date by two years.

“No matter what spin and diversion Energy Minister Chris Bowen tries in Question Time, such as citing wholesale not retail i.e. household energy prices, power prices are going up and will keep climbing rapidly if the Albanese Government backs the Allan Victorian Labor Government’s aggressive push to build VNI-West, come hell or high water.”

Victorian Energy Police Centre director Bruce Mountain told The Australian VNI-West’s cost revisions could increase power bills for households by at least 50 per cent, and for large customers between 2.5 to 3.5 times current levels.

The Allan Government’s National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Bill 2025, carrying fines of over $12,000 for farmers who lock their gate to the government’s Transmission Company Victoria obstructing construction of VNI-West, passed Victoria’s House of Assembly last night and is now before the Legislative Council.

A thousand farmers and Melbourne residents protested on the steps of Parliament House on Spring Street, Melbourne, against the draconian measures in the Bill, following previous protests against the Allan Government’s new farm land tax, called an ‘Emergency Services Volunteer Fund’ Levy.

“I am so proud of Mallee farmers and their supporters in Wimmera, Grampians and other regions – and now in the city - who are joining my fight to make their voices heard in Melbourne,” Dr Webster said.

“Sadly we have to fight Labor’s condescending attitude to regional Australia on two fronts, in Canberra and in Melbourne, but the message is getting through – not only for the sake of our farmers and food security, but for the affordability of electricity, which impacts everyone.”

“I’m still processing the 5,000+ Mallee’s Biggest Survey responses and well over 50 per cent so far have said they prefer affordability as a priority in our energy grid, ahead of reliability and reducing emissions at less than 9 per cent.” (Mallee's Biggest Survey responses can still be posted in or entered at www.annewebster.com.au)

Origin Energy chief executive Frank Calabria said on Wednesday that transmission and distribution costs make up about 40 per cent of household power bills.

VNI West still faces energy regulator approval, where it must demonstrate a net benefit to consumers.

While VNI West comprises 240 kilometres of 500 kilovolt transmission lines from Bulgana to Kerang - entirely within the Mallee electorate - Labor’s ‘Rewiring the Nation’ plans require 28,000 kilometres of transmission lines to be built across the nation in pursuit of ‘net zero’ emissions by 2050.