THE TRUTH ABOUT NSW ENERGY PRICE HIKES

Monday, 21 March 2011 14:15

With the real cause of NSW energy price hikes revealed in the leaked Duffy/Parry Report, real action can now be taken, said Total Environment Centre (TEC) today.

The report’s authors found the Government caused massive price rises when Treasury allowed power companies to enter into an agreement in 2009. Under the deal the companies could spend what they wanted on infrastructure, outside IPART rules, in the period up until the Australian Energy Regulator took over pricing controls in 2009.

“This further exacerbated the already overblown capital budgets and minimised the cheapest approach - energy efficiency," said Jeff Angel, Director of TEC.

"The defenders of this approach talk about 'keeping the lights on' to silence critics, but it's the refuge of those who can't develop efficient energy supplies.  Energy efficiency is cheap and reliable as overseas examples (eg California) have shown.  A key motivation to date has been that the more the utilities spend on infrastructure, the more money they make, which sends dividends to Treasury."

At the same time The Business Council of Australia has announced that it does not support either setting an aspirational national energy efficiency target, or introducing a mandatory national energy savings scheme.

“The BCA is locking its members into spiraling energy costs - surely not an intelligent position,” said Mr Angel. “ Energy costs for businesses across the state are rising too, and will continue to do so.

“It’s been estimated that prices will go up to 43 per cent for the next three years, after 43 per cent rises in the past three years," said Mr Angel.

“Clearly energy efficiency targets should be urgently introduced across the board.”