A NSW government plan to curb power bills by offsetting the cost of its Solar Bonus Scheme is akin to giving with one hand and taking with the other, the state opposition says.
NSW Premier Kristina Keneally on Tuesday announced the government would redirect uncommitted funds from the NSW Climate Change Fund to pay for its Solar Bonus Scheme, offsetting the cost to electricity consumers.
In total, the Labor government would contribute an estimated $471 million in 2011/12 towards the cost of the Solar Bonus Scheme, offsetting electricity bill rises of between five to 10 per cent from July 1.
The policy, which may not come into effect if the government loses the March 26 state election, would spare the average electricity consumer a $100 rise in the 2011/12 financial year, and $50 a year subsequently.
“The government is looking at what we can do in order to ease those cost-of-living pressures,” Ms Keneally told reporters in Sydney.
“The state government can’t make food or petrol cheaper, but there are things that we can do.”
But opposition leader Barry O’Farrell said under Labor’s plan electricity consumers would be paying to offset the solar scheme, which ran into trouble last year when the government was forced to slash the feed-in tariff.
The Climate Change Fund is paid for by a levy on water and electricity providers, and was due to wrap up in 2012/13.
By extending the fund until 2020 to pay for the policy, he said the government would be putting a tax on water and power companies that would be eventually passed onto consumers.
Mr O’Farrell accused the premier of being “deceitful” over the promise.
“Only Kristina Keneally believes that by extending a tax on electricity consumers will you actually produce relief for mums and dads across the city, across the state, who are struggling with escalating power bills,” he said.
Ms Keneally denied the climate fund was going to be wound up in 2013.
“I would have said given the fact that we all face a carbon-constrained future, there is no doubt we would have needed to continue the fund,” she said.
Fears of spiralling electricity bills forced the state government in October to slash the Solar Benefit Scheme tariff, which paid households for power fed back into the energy grid.
Responding to spiralling demand for the scheme the premier cut the tariff from 60 to 20 cents per kilowatt hour (kWh), to curb the take-up and future price hikes for customers not signed up to the program.
