IPART REPRIMANDED

Thursday, 08 April 2010 16:55

The Independent Pricing And Regulatory Tribunal (IPART) has been condemned for its role in determining electricity prices, with big hikes predicted for the next three years to 2013.
The tribunal was called to account by Total Environment Centre today for failing to support or even mention the need for energy efficiency measures, while confirming that electricity prices will rise substantially (by 20% to 42% annually in NSW), even without a CPRS.

“IPART seems to accept the need for big spends on infrastructure to the tune of $40 billion without looking at alternatives, in particular without asking if energy efficiency measures would mitigate the need to spend so much,” said Mr. Jeff Angel, director of TEC.

“The NSW government should bring IPART and the electricity retailers and distributors into line with modern thinking about energy supply and efficiency.  Our recent survey of business shows that savings of 20-40% by 2020 could be made.”   
Mr. Angel pointed out that justifying the need for the expenditure as “the only way to improve network reliability and supply security” actually reveals to what extent “IPART has become a mouthpiece for the power industry that supports profligate consumption of electricity rather than efficiency”

Mr Angel further criticised IPART for “surrendering any capacity for broader policy analysis. IPART is happy to talk about federal government compensation for the impacts of the government's CPRS on prices, but seems incapable of applying the same reasoning to the big price hikes sought by the industry.” 

The Federal Government is providing direct cash assistance to 92 per cent of households to assist with the CPRS component of any price rise. This household assistance package – worth $49 billion over ten years – will ensure families are supported as Australia takes action on climate change.

“IPART should insist the retailers adopt energy efficiency so consumers can actively avoid the increased costs - but instead it says nothing.”