Ann: Trading Halt, page-88

Emissions, energy ‘must be considered together’


Cole Latimer

The federal government has come under fire for its approach to energy policy.
Photo: Simon O’Dwyer
The electricity market rule-maker has poured fresh scorn on the federal government’s approach to the sector declaring energy policy must consider together both emissions as well as market issues such as price and security of supply.
The Australian Energy Market Commission (AEMC) yesterday told a parliamentary inquiry that it had repeatedly called for a combined approach to the related issues of reducing greenhouse gas emissions and energy policy.
The federal government has explicitly rejected this approach with Energy Minister Angus Taylor repeatedly arguing his focus in crafting energy policy was on reducing prices while keeping the lights on.
AEMC chief executive Anne Pearson told the inquiry, which is examining the government’s proposed ‘Big Stick’ reforms to keep down prices, that her organisations had watched as state and federal government had pursued policies that were not well co-ordinated or ‘‘thought through’’.
‘‘The commission has called for policy certainty integrating emissions reduction and energy policy so that consumers can continue to have a secure and reliable supply of energy,’’ she said.
The comments came after the AEMC used its initial submission to the senate inquiry earlier this month to take aim at the federal government’s ‘patchwork’ approach to energy policy.
This investment came despite the collapse of the federal government’s broadly supported National Energy Guarantee (NEG), which did attempt to combine an emissions reduction and energy policy.
The government’s ‘Big Stick’ policies that replaced the NEG include a regulated basic energy price for households and power to break up badly behaving electricity companies.
Ms Pearson said the AEMC was still attempting to lay the groundwork for the transitioning energy system. ‘‘While we would like that overarching policy integration, that’s really important, we are still getting on with what we can do within the parameters that we have today,’’ she said.
She noted that there was still substantial investment occurring in renewable energy.
In 2018 there was over $20 billion in investment in more than 80 renewable generation projects.
Greens MP Sarah Hanson-Young said Australia’s lack of energy and emissions policy meant the country was falling behind globally when it comes to renewable power.
Mr Taylor rejected the criticism stating Australia was on track to beat its 2030 international emissions obligations.
‘‘The Fair Dinkum Power inquiry is a stunt by the Greens, who, like Labor, have adopted aggressively high [emissions reduction] targets but failed to provide detail of how they expect to reach those targets, and the impacts these targets will have on Australian small business and families,’’ Mr Taylor said.
Yesterday, a senate committee – comprising mostly government members – also released a report backing the federal government’s forced divestment legislation, although Labor and Greens members released their own dissenting reports.
This bill is currently on hold ahead of the federal election.
‘‘The commission has called for policy certainty.’
AEMC chief executive Anne Pearson

Today's Age/SMH