The federal government needs to drop an existing emissions scheme when it introduces the carbon tax in July so that NSW residents aren’t hit by a double whammy, the state government says.
In a submission to the Draft Energy White Paper, it says the federal government should abandon its Renewable Energy Target (RET) scheme.
The RET, which requires electricity suppliers to source 20 per cent of their electricity from renewable sources, is in place until 2030.
NSW Energy Minister Chris Hartcher says if the scheme remains in place after July, the federal government should compensate households.
He says the federal government’s carbon tax will put added pressure on NSW households.
He said the NSW government is calling for the scrapping of any schemes that duplicate the carbon tax.
“The combined impact of the carbon tax and the RET are expected to add very significantly to NSW household and business electricity bills in the coming year,” he said in a statement.
“NSW consumers just can’t afford to be hit with a double whammy.
“It is unreasonable for federal Labor to expect NSW households to bear the costs of unsustainable and costly green schemes.”
Mr Hartcher said the Independent Pricing and Regulatory Tribunal had calculated that the RET was the cause of one third of 2011/12 electricity price increases.
“That equates to $75 per customer, for just one year, for just one policy,” Mr Hartcher said.
“Removing duplicative programs will reduce electricity costs for NSW consumers.
“At the very least, federal Labor should be taking action to assist with alleviating electricity price rise pressures.”
Kane Thornton, acting Chief Executive of the Clean Energy Council, accused the NSW government of seeking “minimal short-term gain”.
“You can’t just turn major policies on and off like a light switch,” he said in a statement.
“It’s a worrying sign that we have an Energy Minister in NSW who doesn’t seem to fully understand Australia’s most significant energy policies and the consequences that would result if we suddenly abandon one of them.”
Mr Kane said dumping the scheme would threaten billions of investment dollars from at least 600 companies.
“The RET is scheduled to run until 2030 and the thing Australia needs most right now is policy certainty so local and international investors can have the confidence to invest in our economy,” he said.
