Page 3672 - Week 10 - Thursday, 19 September 2019
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
on average across all Canberra households. Participating households are making average weekly savings of $5.78.
As I said when I presented the bill, 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. The independent review of the scheme found the scheme had been operating with a benefit to cost ratio of four to one, making it extremely cost effective. Indeed, rather than imposing a cost on carbon savings, this scheme has been delivering an economic benefit of lifetime savings to the ACT economy valued at $190 per tonne of greenhouse gas emissions that are avoided.
Modelling has shown that a balanced approach in setting the scheme metrics to optimise economic and social equity and environmental outcomes will continue to deliver strong economy-wide benefits over a 10-year extension. The net present value of benefits to the ACT economy has been modelled at $15.4 million for an extension which retains the current energy savings target and pass-through costs to householders and businesses. At that level, householders and businesses would not see any increase in energy costs as a result of this bill—not see any increase in their energy costs as a result of this bill.
I am happy to provide a further briefing for the Canberra Liberals after the passage of this bill. The speech we heard today was full of opinions but not a lot of evidence. I am very happy, and I am sure my officials in the Environment, Planning and Sustainable Development Directorate would be happy, to go through these details for members of the opposition if they are interested. The government is continuing the modelling work so that an initial energy savings target may be set at an optimal level following legislation of the scheme extension.
While on the topic of cost-effectiveness, it is worth reminding the Assembly that this scheme is also helping to develop sustainability industries in the territory. Before an electricity retailer or authorised installer can undertake eligible activities, they must complete induction training on the scheme and the individual activities they will be undertaking. Since the scheme began in 2013, 93 induction training sessions have been held, attended by more than 550 installers, most of them from local companies.
Another important point is how this bill relates to the ACT’s successful achievement of the 100 per cent renewable electricity target by 2020. In short, the bill both responds to and supports the target. The bill responds to the target by redefining the energy savings obligation as an energy metric measured in megawatt hours of electricity saved instead of tonnes of carbon dioxide equivalent. The use of the electricity metric of megawatt hours is a convenience to support scheme delivery by electricity retailers. Where the scheme delivers gas or other energy savings which are more commonly measured in joules, these will be converted to megawatt hours for target setting and reporting purposes.
This change was recommended by the independent review and reinforced by modelling which showed that this approach will best serve the scheme’s cost-effectiveness in the context of 100 per cent renewable electricity. The energy metric will unlock new benefits to the ACT economy by supporting upgrades to
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video