Dio Wang (WA, Palmer United Party) Share this | Hansard source

I move Palmer United Party amendment (1) on sheet 7719 revised:

(1) Schedule 1, page 15 (after line 2), at the end of the Schedule, add:

Part 5—Self -generation

Renewable Energy (Electricity) Act 2000

53 Subparagraph 31(2)(b)(ii)

  Omit "used solely", substitute "used predominantly".

54 After subsection 31(2)

  Insert:

  (2A) For the purposes of subparagraph (2)(b)(ii), electricity that is transmitted or distributed is used predominantly for the transmission or distribution of electricity if:

     (a) the primary purpose of generating the electricity is for the use of the end user who generated the electricity; and

     (b) an amount of that electricity, no greater than the threshold amount determined under subsection (2B), is made available for use in relation to one or more services in the public interest.

  (2B) For the purposes of paragraph (2A)(b), the Minister must, by legislative instrument, determine a threshold amount of electricity which can be made available for use in relation to one or more services in the public interest.

  (2C) The Minister must:

     (a) make a determination under subsection (2B) within 3 months of the commencement of this subsection; and

     (b) as far as is practicable, ensure that a determination under that subsection is in force at all times after that determination comes into force.

I am concerned that the Renewable Energy (Electricity) Amendment Bill 2015 does not include provisions to overcome a potentially serious flaw in the RET legislation. The problem arises due to the consequences of incidental uses of electricity under the existing legislation, and has potentially serious impacts in my home state of Western Australia. And I note that comments made by shadow minister Gray in the House debate also asked the government to address this matter.

The issue arises because the concessions available to self-generators of electricity from RET liability only apply where such self-generated electricity is used solely by that person. That said, the law must make provisions for the situation where a small amount of electricity is used by third parties to provide vital community services. The Alcoa facilities in Western Australia provide this incidental power for police communication services, telephone services and for the local government. It is ludicrous that Alcoa should face a substantial penalty for making the electricity available to enable these public services.

The Warburton review also recommended that the issue be addressed. It said:

… the Panel recommends that self-generators should be permitted to supply incidental amounts of electricity to third parties for community services on an otherwise dedicated line while still being eligible for the exemption.

My amendment simply asks the minister that within three months, by a legislative instrument, he must determine a threshold amount of electricity that can be made available for use in relation to one or more services in the public interest.