Page 2961 - Week 09 - Thursday, 18 September 2014
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I ask leave to make a statement in relation to the paper.
Leave granted.
MR CORBELL: I am pleased today to table the outcomes of the independent review of the Energy Efficiency (Cost of Living) Improvement Act 2012, as required under part 7 of the act.
The intent of the Energy Efficiency (Cost of Living) Improvement Act 2012 is to provide for a market-based scheme that places an obligation on electricity retailers in the ACT to achieve energy savings. The act aims to encourage the efficient use of energy, reduce greenhouse gas emissions associated with stationary energy use in the territory, reduce energy use and costs and, in particular, assist low income households suffering from utility cost stress.
The review of the act finds that the scheme it provides for, the energy efficiency improvement scheme, is successfully meeting these aims—helping ACT households to access significant energy and, therefore, cost savings on their electricity and gas bills. I note, of course, that this is the scheme opposed by the Liberal Party.
As we know from the work undertaken to inform the development of the act, the need to address energy efficiency in the ACT arises for a number of reasons. The ACT maintains the unenviable position of being one of the highest per capita energy users in Australia. Despite great potential for energy savings across all sectors of the economy, a range of market failures have to date prohibited the uptake of cost-effective energy efficiency activities. Energy efficiency measures often have a short pay-back period on their initial cost and yet often even the easiest things are not done—opportunities to improve environmental outcomes are missed and our community remains vulnerable to rising energy prices.
Including future emissions abatement, the review has concluded that the scheme is deemed to have abated approximately 238,000 tonnes of greenhouse gas emissions through the installation of over 270,000 items in over 24,000 Canberra homes during the period 1 January 2013 to 31 March 2014. This equates to average emissions abatement per household of nearly 10 tonnes of carbon dioxide equivalent.
Noting that the act requires that a proportion of energy savings be achieved in low income households, I am also pleased to report to members that 30 per cent of savings have been achieved in these priority households to date—exceeding the 25 per cent target.
The review estimates the net present value of energy cost savings from activities undertaken to date is $1,614 per participating household, or a $318 saving in annual terms for each household. This is compared to the estimated cost to households of around $19 in 2013 and $33 in 2014. This scheme has been a real success, saving households on average $318 off their electricity and gas bills.
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