Energy Cost Denied

The Weekly Times, Page: 33
Wednesday, 5 April 2006

THE Victorian Government has dismissed as "pure speculation" claims that a state-based renewable energy scheme would increase household power bills by up to 6 per cent. In a bid to boost Victoria's wind and other green energy production, the Government is considering its own version of the federal Mandatory Renewable Energy Target (MRET). Under the scheme, energy retailers must contribute to the generation of 9500 gigawatt hours of renewable energy per year by 2010, by buying certificates awarded to green energy producers. But state Energy Minister Theo Theophanous told Parliament last week Victoria had been unable to meet its target of 1000 megawatts of wind power by the end of this year because the Federal Government would not increase the MRET.

Mr Theophanous said the Government was now considering its own scheme to achieve its target of 10 per cent of the state's power coming from renewable sources by 2010. But with the Government set to announce its plans within months, some industry experts have warned Victorian households would be hit with higher electricity bills as a result. Origin Energy spokesman Tony Wood said estimates that the average electricity bill would increase by up to 6 per cent, or $48 a year, were "not unreasonable". In a submission on the proposal, Origin said a state scheme would "not deliver cost effective (greenhouse gas) abatement, being up to four times the cost of that delivered by other approaches".

But a spokesman for Mr Theophanous said estimates on the impact on power bills were "pure speculation and we are currently considering a state based renewable energy target". Australian Wind Energy Association chief executive officer Dominique La Fontaine said the extra cost of a state renewable energy scheme would be small and its benefits tangible. Ms La Fontaine said Business Council for Sustainable Energy figures showed the average home would pay about 35 cents more a week.

A spokesman for anti windfarm group Coastal Guardians Victoria, Tim Le Roy, rejected the idea of a state scheme to boost the wind energy sector. "There is no consumer benefit and no environmental benefit. The Government knows it is not an economic way of reducing greenhouse gases," he said.