Australia to Dump Environment and Social Goals in Power Shake Up

Tuesday, 22 May 2007 05:59

In the lead up to this Friday’s Ministerial Council on Energy meeting in Melbourne, the groups have released the Power for the People Declaration which calls for environmental and social objectives in the new energy laws - to improve efficiency, reduce greenhouse pollution and protect vulnerable consumers.

“Federal, State and Territory Governments want to be seen to lead on climate change, yet they’re in the process of neutering environmental policies by embracing the National Electricity Market (NEM) with its obsession with dirty coal generation,” said Jeff Angel, Total Environment Centre Director.  “The NEM has overseen a massive increase in greenhouse gas pollution and consumption.  Hard-won environmental protections must not be dumped in the transfer of power to the national level.  Other countries such as Britain have well developed environmental objectives in their electricity market laws – why not Australia?”

"It would be a fundamental failure if the policy framework does not guarantee basic social and environmental protection." said Gavin Dufty from the St Vincent de Paul National Council.

"Most states have had strong environmental objectives in their energy legislation and all governments now agree that we need to dramatically reduce greenhouse emissions. At a time of heightened community concern with climate change it is bizarre to think that future energy market developments occur in a manner that does not also support emission reductions,” said Ric Brazzale, BCSE Director.

To date, the prices set by monopoly electricity distribution (“poles and wires”) businesses have been regulated by States and Territories.  As currently proposed, the transfer of regulation to the Australian Energy Regulator and the Australian Energy Market Commission will prevent the new regulators from taking social or environmental goals into account when considering the billions of dollars spent on the energy system each year.  By comparison, the UK, which has a similar energy system, has environmental and social measures in energy legislation.

Today’s Power for the People Declaration calls on MPs to amend the Australian Energy Markets Agreement, the National Electricity Law and the National Gas Law by:

* requiring regulators to consider the environment and sustainable development when making decisions

* requiring regulators to consider social impacts, with particular reference to preventing negative impacts for low income and disadvantaged consumers

* requiring the industry to implement cost effective demand management and energy efficiency to help consumers save energy wherever this is cheaper than investing in more infrastructure.