Power to the people

Adelaide Advertiser
Monday 25/10/2010 Page: 1

Energy-saving scheme will save families $300 a year

THE Federal Government will seek state support for a mandatory energy-saving scheme which its own modelling reveals could reduce the annual family power bill by up to $300 a year. A key recommendation of a Prime Ministerial taskforce on energy efficiency, the scheme would shift the responsibility of reducing electricity use from families to the energy retail companies.

The report was handed to the Federal Government in July, but not released until two weeks ago. Prime Minister Julia Gillard has yet to provide a formal response to the recommendations. But Federal Climate Change Minister Greg Combet confirmed yesterday that he would now push the case for a national energy savings scheme with the state governments.

"Improving energy efficiency is one of the Government's priority areas for tackling climate change", he said. "There is a lot of work to be done but I will be working co-operatively with all state governments.., to progress national reform in this area. "By improving energy efficiency, families will be able to save money on their bills and achieve an outcome that is good for the environment".

The taskforce advisory group set up by former Prime Minister Kevin Rudd in 2009 included mining giant Rio Tinto, energy company Origin Energy as well as the Climate Institute Australia, the ACTU and the National Council of Social Services. Its modelling report, produced by McLennan Magasanik Associates, recommends that on top of a carbon price, power companies meet increased energy efficiency targets of up to 30% - or face financial penalties.

One of the members of the Prime Minister's taskforce, the Climate Institute Australia, said the main way the targets would be met was through energy retailers directly reducing household energy consumption by either fully funding or helping to replace such things as inefficient appliances in the home.

The report found that even with a carbon price or emissions trading scheme, an Energy Efficiency Obligation Scheme could save the average household $90-$300 on annual electricity bills by 2020. Climate Institute Australia deputy chief executive Erwin Jackson said the Federal Government must act on energy efficiency. "The government's own modelling shows along with a carbon price that it could save average families $300 a year", Mr Jackson said.