Page 1096 - Week 03 - Thursday, 22 March 2012
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MR CORBELL (Molonglo—Attorney-General, Minister for Police and Emergency Services and Minister for the Environment and Sustainable Development) (10.13): I move:
That this bill be agreed to in principle.
I am proud today to present the Energy Efficiency (Cost of Living) Improvement Bill 2012 along with its associated draft instruments and supporting regulatory impact statement. This bill establishes a market-based energy efficiency scheme to encourage the efficient use of energy, reduce greenhouse gas emissions associated with stationary energy use, reduce household and business energy use and costs and, in particular, assist low income households struggling with rising electricity bills.
This scheme reflects the government’s commitment to a truly sustainable Canberra and our benchmark greenhouse gas reduction targets. It is Labor legislation through and through—driving the creation of a sustainable and prosperous community, delivering real progress on the path to a low carbon economy and looking after the most vulnerable in our community at the same time.
It is a win-win initiative. It is a win for consumers who can significantly reduce their energy bills and then continue to reap the benefit of those savings long after the scheme has been completed. It is a win for the creation of a sustainable low carbon economy. And it is a win for the environment, through cost-effective and significant reductions in the ACT’s greenhouse gas emissions.
Energy efficiency is a key initiative for the ACT. Electricity use comprises 63 per cent of the territory’s greenhouse gas emissions—the largest single source. Tackling that problem is a logical step in any serious emissions reduction strategy. And many studies have shown that energy efficiency is the most cost-effective way to abate greenhouse gas emissions in Australia. This is reflected in the recent work of the International Energy Agency, Australia’s Productivity Commission, the Garnaut review and the Prime Minister’s task group on energy efficiency.
There is also much credible evidence that, despite ongoing improvements in energy efficiency, great potential remains for additional energy savings across all sectors of the economy. Studies have shown that a range of market failures prohibit the uptake of economic energy efficiency activities. These include lack of information, split incentives and a lack of access to capital to cover implementation costs, especially for low income households and small businesses. These barriers will exist even after a price on carbon is established.
Australia’s industrial and residential energy prices are amongst the lowest in the developed world, and electricity prices in the ACT are acknowledged as being some of the lowest in the country. However, the ACT also maintains the unenviable position of being one of the highest per capita energy users in Australia. Not only does our inefficient use of energy result in high per capita greenhouse gas emissions, it also creates a risk for the community when faced with rising energy prices, more than 80 per cent of which are from essential network and generation investments as well as higher primary energy commodity costs.
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