House debates

Monday, 18 March 2024

Private Members' Business

Energy

11:00 am

Photo of Allegra SpenderAllegra Spender (Wentworth, Independent) Share this | Hansard source

I move:

That this House:

(1) notes that:

(a) expensive and unreliable fossil fuel energy has driven up power bills by over 20 per cent in eastern states;

(b) households can reduce their bills:

(i) by an average between $1,134 and $1,822 a year with rooftop solar;

(ii) between $514 and $1,594 with more efficient electric appliances; and

(iii) by even more with insulation and improved energy efficiency; and

(c) renters, apartment dwellers, and those on moderate and low incomes cannot get these savings, meaning over half of households are missing out on cost of living relief;

(2) acknowledges that:

(a) the Government has taken significant positive steps in this area, including the Household Energy Upgrades Fund, Solar Banks Scheme, and funding for social housing; and

(b) despite these positive steps, no funding has yet been disbursed from the Household Energy Upgrades Fund, and the 110,000 households that will be supported through the scheme are just a small fraction of the millions which need help; and

(3) calls on the Government to:

(a) accelerate disbursement of existing support via the Household Energy Upgrades Fund;

(b) fund a 'people power plan' to lower energy bills in the May budget, with significant additional support for renters, apartment dwellers, and those with lower incomes and savings, as well as new measures to help landlords, homebuilders, and people in regional and rural communities hosting large-scale renewable projects and transmission lines; and

(c) work with state governments to urgently implement promised mandatory energy performance disclosure for rental properties, and minimum energy performance standards.

It feels that every day we hear news of another climate disaster. The world has recorded its hottest year on record, the seventh mass bleaching of the Barrier Reef is underway, and 30,000 people in Victoria were recently told to leave their homes because of catastrophic fire risk. But, whilst our window to 'keep 1.5 alive' vanishes, we also face a second crisis here in Australia.

Cost of living is the issue that dominates every town hall meeting and every poll in every electorate in the country. Whilst many people want to talk about interest rate rises or an unfair rent hike, many others want to talk about their power bills. Over the last year, retail power prices have risen over 20 per cent. These power bills were driven up by our dependence on aging coal plants and expensive gas. But the very real pain that households are feeling is being weaponised by those who seek to blame renewable energy to delay climate action and to pit the regions against the cities in a new culture war. It is more important than ever that our actions to combat the climate crisis also address cost of living.

Luckily enough, we already have the solutions, because over three million households have been shielded from recent energy price rises. They're the ones with solar on the roof. They're people like Nick in Bondi, who installed solar when he renovated his home and is now saving around $150 a month. Nick's story is not unique. The average household with solar saves between $1,100 and $1,800 a year. They have cheap, clean energy off the roof and long-term financial certainty. But the opportunity goes beyond solar. Those who switch out gas appliances for more efficient electrical alternatives can reduce bills by between $500 and $1,600 a year. By fixing up home insulation, we can save even more. These actions are great for cost of living, and, by dramatically reducing our use of fossil fuels, they're also great for the planet. By reducing households' peak demand by up to three-quarters, they also reduce the risk that we overspend on transmission.

But over half of Australia's 11 million households are locked out of these opportunities to permanently reduce their power bills. Renters are six times less likely to have solar than homeowners. Their home is much more likely to have a zero energy star rating, because there's not much incentive for landlords to take action, and there are no laws that can tell them to do so. Renters are left frustrated and out of pocket. Apartment dwellers are 10 times less likely to have solar. They're blocked by financial and regulatory barriers, and we've seen them abandoned by government policy for too long. Those with lower incomes and low savings face additional financial constraints. Too many people are locked out of lower power bills, and too many people in regional and rural Australia are not yet seeing the benefits of the transition. It's not fair, and we need to act.

That's why I am today calling on the government to fund a people power plan to lower energy bills at the May budget. The plan should include, firstly, support for households who have been left behind, particularly renters, apartment dwellers and those on low savings or with low income. Secondly, it should include support for people in regional and rural Australia, who this transition cannot succeed without. Finally, it should include driving regulatory reform, including an end to new gas connections, minimum standards for rentals and mandatory energy performance disclosure. We need a multiyear, additional funding commitment that supports an additional half a million homes to electrify over the next three years. And it can be paid for by properly taxing windfall profits of the gas industry, by lowering the deductions cap on the petroleum resources rent tax to 80 per cent.

Earlier today, 14 organisations including ACOSS, Rewiring Australia, Better Renting, the Smart Energy Council, Think Forward and National Shelter wrote to the Treasurer and energy ministers to join my call, and I'm delighted that many of these advocates representing renters, apartment dwellers, young people, low-income earners and people across Australia are here in Canberra today. The government must listen. It must heed their call and it must deliver a people power plan.

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