Heat is off power bills

Courier Mail
Wednesday 14/10/2009 Page: 21

QUEENSLANDERS no longer face the prospect of paying the nation's highest power bills after the State Government agreed to scrap a controversial gas scheme once an emissions trading scheme begins. The Queensland Gas Scheme forces electricity retailers to source 13% of sales from gas-fired power generation. The environmentally friendly scheme is designed to help reduce greenhouse gas emissions. But last year, the Federal Government expressed fears the Queensland scheme could pose "an unnecessary cost on the economy" when an ETS begins.

It would have meant there was a state market-based scheme encouraging the use of gas as well as a nationwide ETS also promoting cleaner forms of energy. But Queensland Energy Minister Stephen Robertson told a Senate inquiry into fuel and energy the state was prepared to budge on the Queensland Gas Scheme if the ETS ticked all the boxes. "The Queensland Government is committed to transitioning the scheme once it is satisfied that the objectives of the gas scheme are efficiently serviced through the carbon pollution reduction scheme (or a similar scheme)," he said.

Prime Minister Kevin Rudd is attempting to navigate his centrepiece climate change policy through a hostile Senate. The Coalition is drafting business-friendly amendments which will be put before a joint party room meeting of Liberal and Nationals MPs on Sunday. Opposition Leader Malcolm Turnbull needs the support of a majority before he can begin negotiating with Labor. Treasurer Wayne Swan said yesterday claims by the Opposition power prices would jump by 30 to 40% under an ETS were alarmist. It comes as Independent Senator Nick Xenophon said he was disappointed the debate on an ETS had focused on Opposition divisions rather than the actual legislation. "The focus has been on what the Coalition is doing rather than on the government scheme.

It is the government scheme we need to look at," Senator Xenophon told Sky News. "It is important that the Liberals go to the negotiating table in good faith but they need to have a scheme that actually delivers both in environmental terms and in economic terms." Senator Xenophon said the Government appeared amenable to some amendments around the edges but what was needed were more fundamental changes to the way the electricity industry was treated. He said prices were set to skyrocket and that would be an impost on every business.