It seems at times some parties pull figures on the cost of green schemes in relation to electricity bills out of thin air.
The larger the percentage impact quoted, the more likely that the figure has come from Big Energy or fossil fuel sector interests desperate to preserve the status quo – or more accurately; to revive the old status quo.
So, how much do green schemes *really* account for in household electricity prices?
Carbon tax – 9% – but..
The cost of the carbon price is around 9 percent of household bills. However, households receive on average, $10.10 per week in assistance to help cover the impact of the carbon tax, which in relation to electricity is around $3.30 per week (Source: RET.gov.au – PDF). Additionally, the early shift to an Emissions trading scheme will see the carbon price decrease, but households will retain the Household Assistance Package.
Renewable Energy Target – 3%
The Australian Energy Market Commission (AEMC) estimates the Renewable Energy Target comprised around 3 per cent of household electricity prices on average in 2012-13.
Energy Efficiency And Management Schemes – 3%
These vary from state to state and are not limited to wind and solar power related initiatives. The AEMC estimated these schemes made up around 3 per cent of household electricity prices on average nationally in 2012-13.
Solar Feed In Tariffs – Varying
Again, these vary between states; but using South Australia as an example – which had/has a generous feed in tariff (and it’s about to be reduced further for new connections) – these incentives contribute to around 7% of the price of household electricity bills (Source: ESCOSA).
Green schemes are not the major culprit
It’s been stated so many times before, but it’s worth saying again – network charges (poles and wire) have been the prime villain in electricity price rises; not green schemes. Australia now has billions of dollars worth of electricity infrastructure in place that is only required on a handful of days each year. Approximately 51% of an electricity bill goes towards network charges. (Source: RET.gov.au – PDF)
Green schemes becoming cheaper
In March this year, AEMC Chairman John Pierce stated (and bear in mind the statement was made before the announcement of the early shift to the cheaper ETS):
“The price impact of environmental initiatives is also moderating. The carbon price has already been factored into wholesale energy costs, and the impact of various state and commonwealth environmental schemes is likely to slow from this year. This reflects the end of the solar credits multiplier under the Small-scale Renewable Energy Scheme from 1 January 2013, and the closing of higher feed-in tariffs to new participants in many states.”
