❓ Hon Paul Llewellyn questions the Minister for Energy about the cost implications of mandatory renewable energy targets, particularly regarding electricity price increases and the fairness to NaturalPower users. The Minister defends the government's approach, citing consultation and cost averaging.
AnsweredQoN 646Legislative Council
QuestionView source ↗
MANDATORY RENEWABLE ENERGY TARGETS - MCLENNAN MAGASANIK ASSOCIATES
I refer to the McLennan Magasanik Associates study of the impact of mandatory renewable energy targets on electricity prices in Western Australia that was released today, and the finding that a mandated target of 20 per cent renewable energy by 2020 would increase the retail price of electricity by 1.7 per cent. (1) Does the minister consider that a 1.7 per cent increase in the price of electricity by 2020 is too high a price to pay for a 20 per cent target? (2) Why did the government not go to the community for its view on whether a 1.7 per cent increase is too high a price to pay? (3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE
I refer to the McLennan Magasanik Associates study of the impact of mandatory renewable energy targets on electricity prices in Western Australia that was released today, and the finding that a mandated target of 20 per cent renewable energy by 2020 would increase the retail price of electricity by 1.7 per cent. (1) Does the minister consider that a 1.7 per cent increase in the price of electricity by 2020 is too high a price to pay for a 20 per cent target? (2) Why did the government not go to the community for its view on whether a 1.7 per cent increase is too high a price to pay? (3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE
AnswerView source ↗
I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(1) Does the minister consider that a 1.7 per cent increase in the price of electricity by 2020 is too high a price to pay for a 20 per cent target? (2) Why did the government not go to the community for its view on whether a 1.7 per cent increase is too high a price to pay? (3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(2) Why did the government not go to the community for its view on whether a 1.7 per cent increase is too high a price to pay? (3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(1) Does the minister consider that a 1.7 per cent increase in the price of electricity by 2020 is too high a price to pay for a 20 per cent target? (2) Why did the government not go to the community for its view on whether a 1.7 per cent increase is too high a price to pay? (3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(2) Why did the government not go to the community for its view on whether a 1.7 per cent increase is too high a price to pay? (3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(3) Does the minister think that it is fair that NaturalPower users will wear an eight per cent increase on their bills, when the rest of the community has 13 years to find an extra 0.7 per cent to meet the government’s 15 per cent target? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
I thank Hon Paul Llewellyn for providing some notice of this question. (1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(1) The estimated 1.7 per cent increase in electricity prices for a 20 per cent target represents more than double the increase in electricity prices for a 15 per cent target, which is 0.7 per cent. The price increases for consumers from renewable energy targets are on top of increases that are expected to result from future carbon costs. The retail price increases associated with future carbon costs that were modelled assume a 15 to 22 per cent price increase for consumers. The government’s target of 15 per cent by 2020 represents an appropriate balance between the costs and benefits of increasing the use of renewable energy. (2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(2) It did. The government’s consultation process invites views from stakeholders, including interested members of the community, particularly consumers. (3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
(3) NaturalPower is a voluntary program in which consumers can choose the amount of renewable energy they purchase. The recent cost increases in NaturalPower reflect the real cost of generating electricity from renewable energy sources and are appropriate. A mandated renewable energy target will increase costs for all residential and most business electricity consumers. The costs appear lower because they are averaged across almost all customers, not just those customers who choose to purchase renewable energy. The actual cost of supplying a unit of renewable energy is expected to be the same under NaturalPower and the government’s renewable energy target.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.