none

ACCI pushes for energy sector reform

31-08-2010
by 
in 
ACCI pushes for energy sector reform

The Australian Chamber of Commerce and Industry has called on governments to reform the energy sector to provide much needed relief for energy users.

ACCI strongly supports the sale of remaining government-owned electricity assets to the private sector, including the transmission and distribution networks – the bulk of which are owned by state and territory governments.

ACCI says the business community is looking for the federal government to work with these levels of government to provide support and incentives and implement desirable reforms. 

In a submission to the Energy White Paper, ACCI points out that electricity and gas prices for business have increased by 60 and 44 per cent respectively since September 2009. This far outstrips the 11 per cent rise in overall business input costs over this period.

Representing businesses throughout Australia, ACCI has called on the government to use the Energy White Paper process to outline “a clear and achievable strategy for achieving greater efficiency in the energy sector.” 

 "There has to be a re-balancing of the policy focus away from the proliferation to expensive carbon abatement schemes, to pragmatic structural reforms that will lower prices, ACCI's Acting Chief Economist, Burchell Wilson said.

"Privatisation of the remaining government owned electricity assets has the potential to yield significant gains for energy users, he said. “Sale of these assets to the private sector arguably should have taken place decades ago and it has only been an ongoing campaign of misinformation that has prevented these gains being realised."

The Productivity Commission has examined the issue in detail and concluded: 

"There are strong arguments for privatisation of these businesses. There is no evidence that the productivity, reliability, quality or cost performance of private sector electricity network businesses is worse than their public sector equivalents. To the contrary, the evidence in Australia and internationally suggests that such private sector enterprises are more efficient."

Mr Wilson said the carbon tax remains a substantial cost penalty on Australian industry.

“It is clearly excessive relative to other international efforts to abate carbon, he said. “On top of the carbon tax, industry has also had to bear the burden of a dramatically expanded Renewable Energy Target (RET) that is currently imposing a $1.5bn cost on the economy that is set to rise to $5bn by 2020.

“Incredibly, it can cost up to $525 for each tonne of carbon emissions abated under the RET, making it a remarkably high cost abatement scheme". 

The upcoming review of the RET should provide more clarity about the costs the scheme imposes on energy consumers and there needs to be a serious examination of the policy merits of its winding back or abolition.

Mr Wilson said reform momentum has to be re-established.

“The first step involves articulating the benefits to energy users.”

The ACCI submission can be found at: http://www.acci.asn.au/

 

Related news & editorials

  1. 19.03.2019
    19.03.2019
    by      In
    Newmont Mining Corporation’s Tanami Power Project has been completed safely and on schedule. The project, in the west of the Northern Territory, included the installation of two power stations, a 66kV interconnected power line and a 450km natural gas pipeline. The pipeline was built and will be... Read More
  2. 19.03.2019
    19.03.2019
    by      In
    Corio Bay Dairy Group (CBDG) is a joint venture between 100 per cent Australian farmer owned Organic Dairy Farmers of Australia (ODFA), Wattle Health Australia, and Blend and Pack.
    CBDG has commenced earthworks at Cowie St, North Geelong, building Australia’s first dedicated organic nutritional... Read More
  3. 15.03.2019
    15.03.2019
    by      In
    Flushed with success, Australian master distributor Control Logic took out all three awards from the prestigious Emerson Machine Automation Solutions 2019 Asia Channel meeting held in Shanghai. This was the company’s second consecutive successful year at the prestigious meeting, and included the “... Read More
  4. 15.03.2019
    15.03.2019
    by      In
    A circular economy represents a golden opportunity to combine corporate sustainability with profits, but is obstructed by weak chemicals legislations in every part of the world. In many cases, the corporate world is ahead of legislation, and the notion that there is a contradiction between... Read More