RET reduces household electricity costs
30 April 2014
Key findings from a report produced by ROAM Consulting and released by the Clean Energy Council today include that the Renewable Energy Target (RET) scheme results in lower electricity bills for households.
The report compares wholesale and retail electricity prices under the existing RET scheme to a scenario where the RET is abandoned.
The key findings are that the RET, as currently legislated:
- allows Australian households to save hundreds of dollars on their electricity bills;
- drives significant investment in Australian industry; and
- creates thousands of local jobs in regional Australia.
Infigen Energy’s Managing Director, Miles George said the study was an important contribution to the issues being considered by the RET review panel.
“This study, like many before, has once again shown that renewable energy helps to lower electricity costs for households. Australian households will pay over $50 more for electricity in 2020 if the RET is dumped, and beyond 2020 household bills would be up to $140 more per year.” said Mr. George.
One aspect of the study that could not be modelled was the potential cost to Australia in terms of availability and cost of future inbound foreign investment, should the RET be materially changed.
“I receive calls, emails and letters regularly from our large international investors who monitor Australian media coverage of the RET review. They have expressed deep concerns about how some of the suggested adverse changes to the RET might affect their investments in Australia” he said.
The RET, including the legislated 41 TWh target, has had bipartisan support since its introduction, and throughout the 2013 federal election campaign.
“It is important that the review process now underway recognises that investors have provided long term capital to build long life assets supported by a long term scheme. These investments were made in good faith as a direct and intended consequence of this legislation,” said Mr. George.
Richard Farrell, Investor Relations Manager
Tel +61 2 8031 9900