Renewable Energy Target must be reviewed

Queensland Minister for Energy Mark McArdle has reinforced the need for the Renewable Energy Target to be revised, to take pressure off electricity prices for Queenslanders.

Mr McArdle said recent commentary alleging that the Renewable Energy Target places significant downward pressure on electricity prices is incorrect.

“In determining the cost of making, producing and supplying electricity, the Queensland Competition Authority has confirmed the effect that the Renewable Energy Target has on pushing up the cost of supply of electricity to households and businesses,” he said.

“In a subsequent letter to me the Queensland Competition Authority estimated that the cost of the Renewable Energy Target equated to $81.24 on an average household electricity bill.

“This clearly demonstrates the effect that the Renewable Energy Target has in putting upward pressure on electricity prices.

“We’ve been working hard to deliver better infrastructure as we promised at the election, to put downward pressure on prices.

“Revising the Renewable Energy Target and axing the carbon tax are two ways that electricity used could get immediate relief.”

Mr McArdle said that the Queensland Government supported renewable energy but it must be commercially cost effective.

“If it isn’t commercially cost effective we are simply adding to electricity prices by mandating a level of green energy that must be used, regardless of how expensive it is,” he said.

“I welcome the Federal Government’s impending review of the Renewable Energy Target because it will allow Queenslanders to have the conversation about whether Australians are prepared to pay for energy sources that are not economically viable through their electricity bills.

“The Newman Government is doing what it to keep downward pressure on power costs but this can must be looked at in order to put a stop to the escalating cost-of-living for Queenslanders.”

[ENDS] 19 December 2013

Media Contact: Natalie Wynne 0437 334 183