Regulatory Impact Statement backs up Government approach on energy efficiency

Detailed modelling released today shows Canberrans can save around $300 on their household energy bills by 2015, strengthening the ACT Labor Government's proposal to provide energy efficiency services to more than 70,000 homes across the ACT, Minister for the Environment and Sustainable Development, Simon Corbell said today.

Mr Corbell will introduce the Energy Efficiency (Cost of Living) Improvement Bill into the Legislative Assembly today.

"The Government has produced a comprehensive regulatory impact statement that considers all aspects of the proposed legislation in terms of cost, but also savings to consumers on their annual electricity bill," he said.

"The modelling shows that there would be a net benefit to the ACT economy to the tune of $40 million as well as total household level savings of $2140 over the life of the energy efficiency measures implemented. This is after pass through costs of $87 are included in electricity bills over a 3 year period.

"What is telling in this analysis is that while cost impacts occur over a short three year period and total $87, the average savings are around $300 in the short term and continue after the scheme concludes, rising to $2140 per household over the life of the measures implemented in homes. Many households will be able to achieve savings greater than the average," said Mr Corbell.

Measures that may be incorporated in the scheme include replacing inefficient heaters, air-conditioners and water-heaters, as well as double glazing, draught ceiling and insulation.

"The analysis also demonstrates that low income earners, including renters, will be major beneficiaries of the scheme because the scheme will assist with the upgrade or replacement of old and inefficient appliances such as fridges, televisions and dryers," Mr Corbell said.

"Cost of living is a concern in our community and the ACT Labor Government has created a legislative framework that has a double benefit of creating savings on annual electricity bills as well as reducing the amount of carbon going into the atmosphere by up to 750000 tonnes over the life of the scheme."

Mr Corbell said this was a win-win for the Canberra community.

"This legislation helps to reduce the cost of living for Canberra households, while seeing a reduction in carbon emissions in the order of 6% on residential sector emissions in 2015, contributing significantly to the ACT Labor Governments carbon reduction targets," he said.

The Bill, if passed, will commence operation on January 1, 2013, and will be reviewed in 2014 to determine whether the Scheme should be extended after 2015.

"The government looks forward to the support from other parties in the Legislative Assembly following the tabling of the Bill tomorrow," Mr Corbell said.

Further information and a copy of the regulatory impact statement will be available at www.environment.act.gov.au/energy_efficiency.