❓ Hon. Kate Doust questions the Energy Minister regarding a dramatic reduction in the Renewable Energy Buyback Scheme (REBS) rate paid by Synergy, focusing on the fairness and justification of the rate change for SmartPower consumers.
AnsweredQoN 937Legislative Council
QuestionView source ↗
ELECTRICITY FEED-IN TARIFF
I refer the minister to his answer to question without notice 868, in which he stated that the renewable energy buyback scheme rate paid by Synergy was changed to better reflect the wholesale value of the electricity. (1) Will the minister table Synergy’s calculations that led to the dramatic reduction in the REBS rate; and, if not, why not? (2) Did Synergy take into account the fact that energy produced from photovoltaic sources is more valuable, as it is produced during peak demand times, and significantly reduces energy loss during transmission; and, if so, will he table its calculations showing how this was factored into the REBS rate? (3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER
I refer the minister to his answer to question without notice 868, in which he stated that the renewable energy buyback scheme rate paid by Synergy was changed to better reflect the wholesale value of the electricity. (1) Will the minister table Synergy’s calculations that led to the dramatic reduction in the REBS rate; and, if not, why not? (2) Did Synergy take into account the fact that energy produced from photovoltaic sources is more valuable, as it is produced during peak demand times, and significantly reduces energy loss during transmission; and, if so, will he table its calculations showing how this was factored into the REBS rate? (3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER
AnswerView source ↗
I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(1) Will the minister table Synergy’s calculations that led to the dramatic reduction in the REBS rate; and, if not, why not? (2) Did Synergy take into account the fact that energy produced from photovoltaic sources is more valuable, as it is produced during peak demand times, and significantly reduces energy loss during transmission; and, if so, will he table its calculations showing how this was factored into the REBS rate? (3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(2) Did Synergy take into account the fact that energy produced from photovoltaic sources is more valuable, as it is produced during peak demand times, and significantly reduces energy loss during transmission; and, if so, will he table its calculations showing how this was factored into the REBS rate? (3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(1) Will the minister table Synergy’s calculations that led to the dramatic reduction in the REBS rate; and, if not, why not? (2) Did Synergy take into account the fact that energy produced from photovoltaic sources is more valuable, as it is produced during peak demand times, and significantly reduces energy loss during transmission; and, if so, will he table its calculations showing how this was factored into the REBS rate? (3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(2) Did Synergy take into account the fact that energy produced from photovoltaic sources is more valuable, as it is produced during peak demand times, and significantly reduces energy loss during transmission; and, if so, will he table its calculations showing how this was factored into the REBS rate? (3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(3) Does the minister think that it is fair that for SmartPower consumers who are producing energy at their homes there is not a higher REBS rate, when previously they had been paid well for shoulder and peak energy production? Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
Hon PETER COLLIER replied: I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
I thank the honourable member some notice of the question. (1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(1) No, Synergy has advised it considers the information used in its calculations to be commercially sensitive. (2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(2) Yes, Synergy did take into account transmission loss and peak demand considerations. As stated in response to (1), Synergy considers the calculations to be commercially sensitive. (3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
(3) The Electricity Industry (Licence Conditions) Regulations 2005 require Synergy to purchase renewable sources of electricity from eligible customers at a “fair and reasonable” rate. Historically, this rate has been the same price that the customer pays for electricity less the goods and services tax component. As this rate did not accurately reflect the wholesale cost of energy, Synergy was incurring costs in providing the scheme. Although SmartPower customers previously benefited from this arrangement, Synergy believes the revised REBS rate is fair and reasonable. It should be noted that the SmartPower peak rate is designed to encourage customers to shift consumption from peak periods to off-peak and shoulder periods.
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