New energy efficiency law to cut household energy bills

The ACT Labor Government will introduce new laws next week that will deliver energy efficiency savings to up to 70,000 Canberra households, cutting energy bills by up to $300, per annum, by 2015, Minister for Environment and Sustainable Development, Simon Corbell, announced today.

The Energy Efficiency (Cost of Living) Improvement Bill 2012 will require Electricity Retailers to provide households with subsidised or free energy efficiency upgrades to their homes, helping to reduce cost of living pressures on household budgets and reducing carbon emissions in the ACT.

"This legislation will benefit approximately 70,000 households in the ACT, requiring electricity retailers, like ActewAGL, to provide free or subsidised services to households to boost the energy efficiency of their homes, and to provide ongoing energy bill savings of up to $300, per annum, by 2015," Mr Corbell said.

Further, bill savings of more than $2,000 are expected for households over the life time of implemented energy efficiency measures.

Some of the energy efficiency measures that will be made available to households under the legislation include the installation of draught sealing and insulation as well as replacing inefficient heaters, air conditioners and hot water systems.

"The new laws also require a minimum of 25% of all households assisted to be low income households, providing further support to the most vulnerable people in our community," Mr Corbell said.

"These new laws will implement the often simple, but important changes households can make to reduce the amount of energy they use on an annual basis, and the Labor Government has devised legislation that delivers outcomes while reducing the cost of living burden faced by many Canberra households.

"The new scheme would be delivered by electricity retailers to their customers across the ACT from January 1, 2013 and the legislation will mandate a specific requirement to achieve energy savings that reduce carbon emissions by approximately 750,000 tonnes."

Mr Corbell said that the scheme had been developed following a comprehensive regulatory impact assessment and independent modelling of costs and benefits.

"This detailed cost analysis process shows that external factors are going to continue to place upward pressure on energy prices into the future and an industry delivered market-based scheme is the best option to improve energy efficiency and reduce cost of living pressures for Canberra households," he said.

The Bill also provides for the scheme's expansion to small and medium sized business, with a number of measures available from commencement. A further Regulatory Impact Assessment will be undertaken in late 2012 looking at the further opportunities for business participation.

"I look forward to the support of the other parties in the legislative assembly for this important legislation which will reduce cost of living pressures and reduce the ACT's carbon footprint."