Page 1098 - Week 03 - Thursday, 22 March 2012
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The scheme achieves these objects by: establishing a territory-wide energy savings target and mandatory individual electricity supplier energy savings obligations covering, initially, energy savings in the residential sector; defining through regulation activities that suppliers may undertake to promote energy efficiency to reduce greenhouse gas emissions and meet their obligations under the scheme; obliging energy suppliers to undertake a specified proportion of energy activities in priority households; and imposing a penalty on suppliers who fail to meet their obligations under the scheme.
Priority households are those where an individual is a recipient of an ACT government energy concession or holds a commonwealth pensioner concession card or health care card or holds a Department of Veterans’ Affairs pensioner card or similar. In straightforward terms, those who are most vulnerable to escalating electricity costs driven, for the greater part, by national policies and obligations to further invest in energy infrastructure will be those most immediately assisted.
It is important to note that the scheme will require 25 per cent of all energy savings achieved by electricity suppliers to be achieved in these priority group households. This ensures that vulnerable groups get the greatest benefit. The legislation allows for the definition of priority groups to be extended over time, and I look forward to discussing options for such extensions with the community and members who are interested to ensure a fair and comprehensive safety net.
The savings targets for suppliers will be in direct proportion to market share. The scheme provides electricity suppliers with the flexibility to choose the most cost-effective and efficient method to improve energy efficiency. Smaller suppliers can participate in the scheme either by undertaking eligible activities or by paying an energy savings contribution equal to the expected efficient cost of compliance for a large supplier. This mechanism was canvassed with suppliers during consultations in 2011 and received broad support.
I now turn to the question of what are the eligible activities. In essence, they are simple but effective ways of reducing energy use. A schedule of eligible activities will be determined by the minister through a notifiable instrument. Without pre-empting that process, it is worth indicating that such activities might include installing insulation into an uninsulated ceiling or external wall cavity; weatherproofing and air sealing a home—eg, by putting weather strippings onto a door frame, draught arrester on external doors, sealing wall vents, weather stripping windows and so forth; replacing single-glazed windows with double-glazed windows; installing new high efficiency reverse-cycle air conditioners; replacing electric water heaters with solar water heaters; the retirement of pre-1996 refrigerators; the replacement of old energy inefficient appliances like TVs, dishwashers and clothes dryers with high efficiency equivalents; and innovative behaviour change programs.
While some of these measures clearly involve substantial home improvements, people in rental accommodation can also benefit from the scheme through measures such as the upgrade or replacement of old and inefficient appliances such as fridges, televisions and dryers. The result for householders is that they will get immediate
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