National Energy Guarantee explained

The National Energy Guarantee (NEG) is an energy policy proposed by the Australian Government in late 2017.

The NEG aims to lower electricity prices, make the energy system more reliable, encourage investment and reduce emissions.

The Energy Security Board estimates typical household bills will fall by an average of $100-$115 per year over ten years from 2020 if the NEG is adopted.
The Guarantee is made up of two parts, a reliability guarantee and an emissions guarantee.

The reliability guarantee aims to make sure that there is always energy available.

Electricity retailers will have to buy some share of their electricity from "dispatchable" sources, like coal, gas, pumped hydro and batteries, which can be readily switched on.

The emissions guarantee aims to contribute to Australia's international commitments by increasing demand for electricity from lower-emissions technologies.

However, there are still serious questions about whether the plan really can deliver on its aims of reliability, emissions reductions and lower prices.

At the time of going to print , the NEG hasn't actually become policy yet, as the decision is ultimately with the Australian states which will need to pass legislation to implement it.

In summary, the NEG is complicated but, if it is adopted, it may at least slightly lower energy bills.