Price rise threat from renewable energy cuts
Source: The Australian Financial Review, 30 April 2014
Abolishing the Renewable Energy Target could cause consumer electricity bills to rise by an average of $100 a year within a decade, according to a report commissioned by the Clean Energy Council.
The government is currently undertaking a review of the RET, which mandates that 20 per cent of Australia’s electricity comes from renewable sources by 2020.
The review panel is led by Dick Warburton, a self-proclaimed climate change sceptic, leading to concerns it may recommend the target be scrapped.
In the long term, the costs of the RET are outweighed by the savings from a greater use of renewable energies, which by their nature are free to obtain, the report says.
Repealing the RET would deliver an immediate short-term drop in consumer electricity prices by an average of $11 to $22 on an annual bill greater than $1700.
But by 2019-2020, it would cause an increase of the same yearly bill of an average $50, increasing to $100 in the years following as wholesale prices rise.