Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

I table three supplementary explanatory memoranda relating to government amendments to be moved to the Renewable Energy (Electricity) Amendment Bill 2010. The memoranda were circulated in the chamber today.

On behalf of the government, I thank senators in this place for the various conversations and negotiations we have had on this legislation. I have hope that there is broadly an interest in passage of this legislation forthwith. The government believes it is in the interests of the clean energy sector for us to do so. We have certainly engaged in dialogue with the opposition, the Greens and Senator Xenophon, and I had a brief discussion with Senator Fielding as well. I thank the parties represented in those discussions for the constructive and cooperative way that those discussions have been engaged in, and I thank again Mr Macfarlane for his negotiations on behalf of the opposition.

I seek leave to move government amendments (1) to (8) on sheet AL260 together.

Leave granted.

I move:

(1)    Schedule 1, page 3 (after line 15), after item 4, insert:

4A Subsection 5(1)

Insert:

clearing house price has the meaning given by section 30LA.

(2)    Schedule 1, page 4 (after line 7), after item 8, insert:

8A Subsection 5(1)

Insert:

GST inclusive clearing house price has the meaning given by section 30LA.

(3)    Schedule 1, item 58, page 15 (before line 12), before section 30M, insert:

        (1)    The clearing house price is:

             (a)    subject to paragraph (b)—$40; or

             (b)    if the Minister, by legislative instrument, specifies a lesser amount as being the clearing house price for the purpose of this subsection—the amount so specified.

        (2)    The GST inclusive clearing house price is the amount equal to 110% of the clearing house price.

        (3)    Before making an instrument under paragraph (1)(b), the Minister:

             (a)    must take into consideration:

                   (i)    whether the total value, in MWh, of small-scale technology certificates created in 2015 exceeded or is expected to exceed 6,000,000; and

                  (ii)    any changes to the costs of small generation units and solar water heaters; and

                 (iii)    the extent to which owners of small generation units and solar water heaters contribute to the costs of small generation units and solar water heaters; and

                 (iv)    the impact of the clearing house price, and the number of small generation units and solar water heaters installed, on the electricity market, including on electricity prices; and

             (b)    may take into consideration any other matters that the Minister considers relevant.

        (4)    If the Minister is considering a matter mentioned in paragraph (3)(a), the Minister must obtain, and take into consideration, independent advice about that matter.

        (5)    An instrument made under paragraph (1)(b) must not be expressed to commence earlier than the first 1 April following the making of the instrument.

        (6)    If:

             (a)    an instrument is made under paragraph (1)(b); and

             (b)    on a particular day (thetabling day), a copy of the instrument is tabled before a House of the Parliament under section 38 of the Legislative Instruments Act 2003;

then, on or as soon as practicable after the tabling day, the Minister must cause to be tabled before that House a written statement setting out the Minister’s reasons for making the instrument.

(4)    Schedule 1, item 58, page 15 (line 22), omit “$44”, substitute “the GST inclusive clearing house price”.

(5)    Schedule 1, item 58, page 16 (line 15), omit “$44”, substitute “the GST inclusive clearing house price”.

(6)    Schedule 1, item 58, page 16 (line 17), omit “$40”, substitute “the clearing house price”.

(7)    Schedule 1, item 58, page 17 (line 28), omit “$44”, substitute “the GST inclusive clearing house price”.

(8)           Schedule 1, item 58, page 17 (line 31), omit “$40”, substitute “the clearing house price”.

These amendments give effect to the clearing house price. There was some discussion in the Senate committee hearing in relation to the clearing house price. These amendments improve the operation of that clearing house and have regard to a number of the issues raised in the Senate committee report. I am happy to respond to any questions as required.