Electricity to rise 100% by 2015

Archived News, Posted on 26 May 2011

Low-income households would receive financial assistance to overcome ''fuel poverty'' under a proposal to direct carbon tax revenue into lowering electricity bills.

A coalition of welfare, business, clean energy and union groups are urging the Federal Government to fund two national projects that have the potential to save households between $50 and $242 a year between 2012 and 2030.

Under the plans, up to half a million disadvantaged households across Australia would receive home visits to assess energy use, financial assistance to purchase energy-efficient appliances such as heaters and refrigerator and referrals to financial counselling.

A National Energy Savings Initiative would require electricity retailers to find innovative ways to reduce their customers' energy use by up to 3 per cent a year.

ActewAGL general manager Ayesha Razzaq said it was too early to assess the impact of the proposed energy efficiency targets on customers.

But she said the electricity provider had already taken steps to help people reduce energy consumption.

''The Government is still working on a proposal and consulting with stakeholders to come up with the best design and model to suit the Canberra economy.''

In the coming weeks ActewAGL will launch a new website with an energy-savings calculator and would an environmental grant program for schools and not-for-profit groups.

Clean Energy Council chief executive Matthew Warren said the initiative, which was one of the key recommendations of Prime Minister Julia Gillard's task group on energy efficiency, would curb rising electricity bills and reduce greenhouse gas emissions.

''This assists families with their electricity bills, which can be particularly high in Canberra during the winter.''

He said electricity prices were likely to go up by 100 per cent between 2008 and 2015 due to network costs that came from increased peak demand.

The program for low-income households would consume $100million of Australia's expected $10billion carbon tax revenue.

A spokesman for Climate Change Minister Greg Combet said improving energy efficiency was one of the cheapest ways of reducing carbon pollution, but would not confirm whether the proposal would be adopted by the Federal Government.

''The Government is considering energy efficiency as part of our carbon price policy but we have not made any decisions.''