Page 2970 - Week 08 - Thursday, 15 August 2019
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Energy Efficiency Council of Australia describes energy efficiency as “the world’s first fuel”, being just as critical as renewable generation options. The report emphasises that, as well as lowering energy bills and reducing greenhouse gas emissions, energy efficiency improves health and productivity and delivers jobs and economic growth.
This bill is needed because it provides leadership where other Australian initiatives are lacking. The Energy Efficiency Council report notes that, of the world’s 25 largest energy consuming countries, Australia ranks as the worst developed country for energy efficiency policy and performance. Similarly, the International Energy Agency found that from 2000 to 2016 Australia was the fifth worst of 28 countries for improving energy efficiency.
The bill is needed because studies have shown that a range of market failures continue to inhibit the uptake of economically energy efficient activities across Australia, including in the ACT, despite a range of effective programs that are providing rebates, loans, subsidies, minimum standards, energy ratings and education and awareness. These market failures include poor access to capital, particularly for low income households which cannot afford to purchase energy saving equipment up front; potential behavioural failures which occur when people do not understand the best energy saving options available to them; limited understanding of the benefits of energy efficiency; and split incentive problems where the interests of landlords, who have the responsibility for investing in energy system upgrades, do not align with those of tenants who pay the energy bills.
This bill is needed because the energy efficiency improvement scheme is one of the most cost-effective policy interventions delivering energy efficiency outcomes. As was confirmed by the Energy Efficiency Council, this scheme and similar schemes in New South Wales, Victoria and South Australia are among Australia’s most effective mechanisms for driving large-scale investments in energy efficiency.
This bill extends a proven policy option. An independent review of the EEIS conducted in 2018 confirmed that the scheme has effectively delivered large-scale investments in energy efficiency for the ACT since 2013, when it was introduced. About 74,000 households and businesses have received energy savings. The scheme has achieved lifetime emission reductions of over 500,000 tonnes of carbon dioxide equivalent greenhouse gas emissions, which is a greater impact than taking 160,000 cars off Canberra roads for a year.
The energy savings from the EEIS are significant. Small and medium businesses are estimated to save $154 million and households are expected to save more than $210 million over the lifetime of products installed. Average weekly savings are $5.80 for participating households and $100 for participating businesses. Importantly, from a social equity standpoint, more than 19,000 low income households are expected to save $50 million off their energy bills over the lifetime of the energy saving items installed under the scheme to date.
Madam Speaker, in summarising the economic impacts of this bill, I want to emphasise that the energy efficiency improvement scheme does not have a cost for
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