Page 1236 - Week 04 - Thursday, 21 March 1991
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respect to carbon dioxide emissions. Accordingly, a pricing structure which tends to encourage natural gas use relative to less clean competing energy sources may be beneficial from an environmental viewpoint. In this regard, it should also be noted that about a third of the electricity consumed in the ACT is environmentally clean hydroelectricity sourced from the Snowy Mountains.
.. 3) With respect to the third part of Ms Folletts question, asking
whether the Government will act to prevent the use of block
pricing structures by AGL, I believe that. such action, in
isolation, would be unwarranted interference in a commercial
issue and could be counterproductive as an environment protection
and energy conservation initiative.
However, the Government does have a role to play to ensure that prices of energy reflect the true costs, including environmental costs, associated with its consumption. It is most important to ensure however, that economic policies chosen to achieve environmental objectives are the most effective ones available.
The economic and environmental issues associated with developing a comprehensive and effective policy response are very complex. Because of this, Commonwealth, State and Territory working groups and other bodies, including the Industry Commission, are investigating and reporting on energy production, use, pricing and other matters, including environment, protection and conservation issues. The ACT-Government is participating in this process.
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