Executive director of the ERAA, Deane Russell, said the existing policy status was characterised by a fragmented array of short term State and Federal Government greenhouse gas abatement measures.
“These measures tend to be poorly targeted, overly complex and as such, highly inefficient mechanisms for reducing emissions,” Russell said.
“Energy retailers around Australia bear the cost and risk of administering the different State and Federal Government greenhouse gas abatement measures for the electricity sector.
“This is not changing behaviour in the generation and transmission of electricity and more importantly, not changing the behaviour in consumers,” said Russell.
“Because the costs of the various schemes are hidden through complex administration burden, no other parts of the industry or indeed consumers, see any signals about reducing carbon.
“The Sequestration Leadership Forum in Melbourne this week is a step in right direction for the long term solution for carbon emissions, but at the moment, Australia has seven possible policy alternatives which are confronting energy retailers.
“In releasing the policy paper on climate change, the ERAA wants to ensure that there is a consistent approach applied by all State and Federal Governments to this important issue,” Russell said.
“The retailers acknowledge that they have a role to play in the solution, but at the moment they are bearing the cost of inefficient and ineffective policy.”
