Image: Momentmal
The ACCC’s Rod Sims yesterday briefed National Party MPs on a suite of recommendations on electricity affordability, including the premature axing of Australia’s solar subsidy.
In July, the Australian Competition and Consumer Commission published a 398 page report with 56 recommendations for restoring electricity affordability in Australia.
Recommendation 24 stated Australia’s small-scale renewable energy scheme (SRES) should be wound down and abolished by 2021. The Scheme incorporates Australia’s major solar subsidy (aka rebate) that knocks thousands of dollars off the up-front cost of solar power systems. It is already gradually reducing each year and will be entirely end on December 31, 2030.
More on Recommendation 24 can be found here, and initial reactions after the report was published here. SQ’s Ronald also went into detail as to why prematurely axing the solar subsidy is a very bad idea here.
The recommendation to end the financial support was not the focus of the confidential briefing with the National Party yesterday – all 56 recommendations were discussed. Mr. Sims said the recommendations should be seen as a package for adoption rather than cherry-picking any particular suggestion.
Still, if the entire package was adopted, the end result for small-scale solar would be the same.
Smart Energy Council: A Very Real Threat
With the Nationals now briefed, Mr. Simms will move on to briefing the Liberal Party today. It’s not hard to imagine Craig Kelly and Tony Abbott punching the air and high-fiving when Recommendation 24 is raised.
The Smart Energy Council sees these briefings as ominous and says Liberal and National Party MPs will today be asked to sign off on a plan for the early demise of the SRES.
“It would be devastating for the solar industry and devastating for families and small businesses wanting to slash their power bills,” said SEC CEO John Grimes. “The Smart Energy Council will not allow the SRES to be axed now or by 2021.”
Where the Smart Energy Council is getting the idea that it could somehow be axed immediately isn’t clear – and that was not recommended by the ACCC.
However, whether it’s immediately or by 2021, agreeing to such a plan could be devastating for the Coalition too as solar power and renewable energy generally continue to be very popular among Australians. State/territory governments signing on to the National Energy Guarantee with that in tow could also make themselves targets for voter revolt.
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UPDATE: The Clean Energy Council released a statement this morning saying that it will not accept any proposals to abolish or change the Small-scale Renewable Energy Scheme (SRES) as part of today’s negotiations on the National Energy Guarantee (NEG).
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Backbench Committee On Energy Meeting Last Night
In somewhat related news, Federal Minister for the Environment and Energy Josh Frydenberg called a meeting for 8.30pm last night with the Coalition backbench committee on energy to discuss the National Energy Guarantee (NEG), ahead of policy discussions today.
Last Friday, the Federal Government was told by Queensland, Victoria and the ACT at the COAG Energy Council meeting it needed to get its act together on the National Energy Guarantee if it is to have any hope of pushing it over the line. Part of getting its house in order is the NEG must first be approved by the Coalition party room.
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UPDATE: The Coalition party room has approved the National Energy Guarantee. Tony Abbott, Andrew Hastie, George Christensen and Eric Abetz have reserved their position on the legislation reports the ABC.
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About Michael Bloch
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Well, the primary policy of the ACCC, like the legislatures, is loot and burn – get rich as quick as possible, by looting and looking after their own interests, while burning the plebs and the environment; causing as much harm as possible.
In a country where restrictive trading practices and unconscionable business practices, including defrauding customers, prevail, it is not really so surprising, that the Accc wants to aggravate the harm that it does, by maliciously making life even more difficult for the plebs, while poisoning the plebs ad the plebs’ children, and the plebs’ childrens’ children.
“Reserve their position on the legislation” what does that even mean? So it is “approved” but they can continue being a stick in the mud when it comes to writing the legislation?
Approved by the federal party room and approved by the states but Abbott and co can still screw with the legislation.
Scientific Neanderthals.