A Fixation With Idealogy: Qld Greens

The Queensland Greens say Mr McArdle’s “obsession” with renewable energy schemes betrays a fixation with ideology over substance.

“Mr McArdle 9above) continues to pump out shrill, one-eyed press releases seeking to justify the LNP’s decision to gut the Solar Bonus Scheme when he knows that network costs are the real driver of higher retail electricity prices,” Queensland Greens Senate candidate Adam Stone said today.

“If the LNP were genuinely concerned about cross-subsidies and inflating retail electricity prices, they would not have frozen the standard residential electricity tariff.

“Recent work by the Queensland Competition Authority shows that some households would be up to $200 better off under cost-reflective pricing.

“His focus on retail prices also ignores the impact renewables have on reducing wholesale electricity prices, which have continued to fall in recent years in Queensland.

“His repeated attacks on the feed-in tariff, the renewable energy target and the carbon price package also demonstrate that he is fundamentally unwilling to accept any measure or any cost to address climate change, as though the issue can simply be ignored out of existence.”

November 6, 2012

Rooftop solar costs are projected to add more than $240 per year to average electricity bills within five years, according to research from the Queensland Competition Authority.

Energy Minister Mark McArdle said projections showed the upward growth of the Solar Bonus Scheme which will peak in 2015-16 at $240, or more than 12 per cent of an annual average electricity bill.

“I was advised that if this scheme was left uncapped it would have an accumulative cost of $1.8 billion by 2028 when it is due to expire,” he said.

“Government policy changes are expected to save more than $300 million off the $1.8 billion.”

Mr McArdle said the previous Bligh Government was unwilling to limit access to the scheme which resulted in the current situation whereby 80 per cent of households were paying for the electricity of the 20 per cent of households with rooftop solar.

“The Newman Government acted quickly to reduce the solar feed-in-tariff from 0.44 cents to 0.08 cents to minimise the cost of the Solar Bonus Scheme being passed on those members of the community who can least afford to pay for solar panels,” he said.

“There are no plans to remove the $0.44 feed-in tariff for those who remain eligible.”

Mr McArdle said the QCA analysis showed the solar bonus scheme currently added $26 per year to everyone’s annual electricity bill, which will increase to $90 next year if an application by Energex to the Australian Energy Regular was successful.

“On top of the impact of the Feed in Tariff, the QCA has also said the solar bonus scheme will add more than $670 million to costs for Ergon and Energex during 2010-11 to 2012-15 as a result of capital and administrations costs associated with the solar bonus scheme,” he said.

Mr McArdle said he had been advised the Solar Feed in Tariff paid by Energex in September 2012 had rocketed to $13 million from around $10 million in August.

“This cost is passed through to all households in the form of higher network charges which just adds to the burden of this scheme.

“What we have here is Labor, and its Green partners, hiding its head in the sand and continuing to claim that renewable energy schemes are decreasing the cost of electricity.

“This is blatantly untrue and the modelling by the QCA should finally end this myth.”