❓ A WA parliamentary question probes government intervention in the electricity market, specifically regarding Synergy's buyback rate for renewable energy and whether it reflects the true value of that energy. The government defends its limited intervention approach and justifies Synergy's rate based on renewable energy certificate trading.
AnsweredQoN 5764Legislative Assembly
QuestionView source ↗
(1) Is it Government policy that the Government should intervene in the electricity market if there is a demonstrable market failure?
(2) Is the rate set by Synergy to buy back renewable energy from residential and commercial customers a result of split incentives in the South West Interconnected System (SWIS)?
(3) Why does this not represent the true value of renewable energy produced by these customers of the SWIS?
(2) Is the rate set by Synergy to buy back renewable energy from residential and commercial customers a result of split incentives in the South West Interconnected System (SWIS)?
(3) Why does this not represent the true value of renewable energy produced by these customers of the SWIS?
AnswerView source ↗
Answered
10 August 2011
Responded by
Minister for Energy
Response time
55 days
(1) Markets with efficient regulatory frameworks are the preferred mechanisms for the supply of energy and the associated infrastructure and services. The Government is guided by the principle that it should intervene in energy markets only to the extent necessary to ensure public safety and address demonstrated market failure.
(2 - 3) The seven cents per unit exported to the grid paid by Synergy is a fair and reasonable rate, as the electricity purchased by Synergy is not deemed to be renewable energy, given the Renewable Energy Certificates allocated to small scale renewable energy systems are generally consolidated by system providers and sold on the national renewable energy certificate market. The REBS rate of seven cents reflects the wholesale portfolio cost to Synergy of purchasing non-renewable electricity, and does not comprise other costs such as network charges and retail costs.
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(2 - 3) The seven cents per unit exported to the grid paid by Synergy is a fair and reasonable rate, as the electricity purchased by Synergy is not deemed to be renewable energy, given the Renewable Energy Certificates allocated to small scale renewable energy systems are generally consolidated by system providers and sold on the national renewable energy certificate market. The REBS rate of seven cents reflects the wholesale portfolio cost to Synergy of purchasing non-renewable electricity, and does not comprise other costs such as network charges and retail costs.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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