Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I seek leave to incorporate an answer to a question that Senator Milne put to me in my responsibility as representing the Minister for Resources and Energy on 14 August.

Leave granted.

The answer read as follows—

MILNE (14:22): When can the community expect the implementation of a national energy savings initiative?

As agreed by the Multi-Party Climate Change Committee, the Government is presently undertaking investigations into the merits of a national Energy Savings Initiative.

The Energy Savings Initiative Working Group released an Issues Paper and Modelling Assumptions Report for public comment in December 2011.

A Progress Report is expected to be publicly released in the near future.

No decision to implement a national Energy Savings Initiative has been taken, nor have final design details been decided.

Any final decision to adopt a national Energy Savings Initiative will be conditional on the agreement of Council of Australian Governments (COAG) members and all existing states schemes folding into a national scheme.

MILNE (14:24): Why did Minister Ferguson claim that the NEM objective is universally supported, when the evidence is to the contrary?

Minister, can you tell me which of the ongoing inquiries address the question of whether the national electricity objective should be amended to incorporate sustainability and climate change?

So what is the evidence for the statement and which review actually addresses the objectives of the NEM?

The National Electricity Market Objective promotes the long-term interests of energy consumers with regard to price, quality and reliability of electricity and gas services.

These are reflected within the National Electricity Law, the National Gas Law and the National Energy Retail Law.

While there are groups that have argued for change to the Objective, the prevailing outcome has always been that the Objective remains appropriate to the operation of Australia's National Electricity Market.

Most recently, the Ministerial Council on Energy considered the matter of the objective in its development of the National Energy Customer Framework.

It was noted in the Second Reading Speech for the template South Australian legislation for that framework that "adopting an equivalent objective [to that in the National Electricity Law] for the Customer Framework will ensure that the national energy regimes remain focussed on the long term interests of consumers. This is a fundamental principle agreed between governments in the Australian Energy Market Agreement."

In addition, the Australian Government's Draft Energy White Paper noted that "To change or expand these now risks distorting the market by introducing unnecessary confusion for market participants. It is also far from clear how non-energy policy goals could be coherently reflected in a single set of market rules. These issues are best dealt with outside the market settings, as this allows for more targeted, and therefore more effective action."

The Australian Government remains confident that the current Objective remains robust to provide for the effective operation of the NEM, with carbon policy and other environmental issues appropriately addressed through separate legislation and mechanisms such as the Clean Energy Act.