LOWER ELECTRICITY BILLS AS AUSTRALIAN ENERGY MARKET COMMISSION EDGES TOWARDS REFORM
Saturday, 02 April 2011 07:44
The National Energy Market could act to help people with their rising electricity bills and provide low carbon power, Total Environment Centre (TEC) said today, at the Australian Energy Market Commission’s inaugural Strategic Priorities for Energy Market Development event.
Executive Director Jeff Angel represented Total Environment Centre at the forum and provided a voice for electricity consumers and the environment.
“The National Energy Market should serve the ‘long term interests of consumers’, providing reliable and low cost electricity in an efficient manner. Unfortunately its social operating licence is fracturing,” said Mr Angel.
Electricity prices are predicted to increase by at least 100% from 2008 levels by 2015.
“Electricity is no longer cheap, yet billions of dollars are spent to ameliorate peak demand, something that occurs for a only a few hours each year, by increasing investment in infrastructure augmentation. There are serious questions about whether the national energy market has lost its social licence to operate,” Mr Angel said.
“TEC has consistently argued that excessive investment in poles and wires has been the main driver of electricity price rises, a fact which has been confirmed in several reports from eminent authorities like the Australian Industry Group.”
The Garnaut Climate Change Review also confirmed this to be the case when it released its 8th Update Paper Transforming the electricity sector last Tuesday.
“The top ten percent of network load (GW) occurs for less than a 24 hours a year across the NEM. The regulatory structure of the NEM discourages cheaper and more reliable demand-side solutions like demand management and energy efficiency, while rewarding supply-side solutions like network augmentation and centralised supply,” Mr Angel said.
“If the NEM is to regain is social licence to operate, it will need to undergo serious regulatory change.
“The Garnaut Review and the Prime Minister’s Task Force on Energy Efficiency have both recommended changes to the NEM to address perverse incentives and ensure optimum levels of demand-side participation.”
“The timing is right to reform to the National Energy Market. TEC congratulates the AEMC for holding this event and initiating change towards a National Energy Market which truly serves the needs of consumers and the environment.”
