Power in Tasmania: The Greens’ vision

GREENS UNVEIL 21st CENTURY ENERGY VISION

Nick McKim MP
Greens Leader
Kim Booth MP
Greens Energy Spokesperson
Friday, 17 August 2012

The Tasmanian Greens today announced their response to the recommendations of the independent Electricity Supply Industry Expert Panel established by the Parliament in response to a Greens’ initiative.

Greens Leader Nick McKim said the policy delivered a transition to a modern, high-tech, low carbon economy, energy security, and the lowest possible power prices for domestic and business consumers.

Mr McKim said the Greens’ position included support for full retail contestability, the establishing of wholesale trading rooms within Hydro Tasmania and retaining Hydro Tasmania and the Tamar Valley Power Station in public ownership.

“Reforming the state’s energy sector is one of the most important decisions facing this Parliament, and history will judge us on whether we got it right,” Mr McKim said.

“That’s why the Greens have spent considerable time and energy developing a position that will deliver increased competition and promote transparency in both wholesale and retail markets.”

“The Greens want to see significant investment into a smart grid to leverage Tasmania’s NBN advantage, to empower consumers, and prepare our grid for 21st Century energy solutions.”

“A smart grid would basically overlay available technologies onto the existing grid to allow better demand and peak load management, and encourage renewable and distributed generation.”

“The Greens approach is about finding the best long term solution for energy consumers in Tasmania, not what might be politically expedient in the short term.”

“It was the Greens who pushed for this Energy Expert Panel to be established in order to inform decisions on the way forward for our energy sector and we believe it’s fulfilled its role.”
“Our reforms are a package which we believe should be implemented in full.”

“Ultimately the Parliament will make the final decision on energy reform, and the Greens stand ready to negotiate with Labor and Liberal to deliver the best outcome for the state,” said Mr McKim.

Greens Energy spokesperson Kim Booth MP said the proposal for trading rooms within Hydro Tasmania would create a fully competitive market delivering the cheapest possible power prices to Tasmania and breaking up Hydro Tasmania’s monopoly power.

“The Greens’ position represents a fundamental shift in the way power prices are set in Tasmania, moving from a regulated model to a market-based model delivering greater competition at both the retail and wholesale levels,” Mr Booth said.

“We are proposing the biggest reform in the Tasmanian electricity sector since the dams were built, which will have a long term benefit across the economy with lower energy prices to both business and domestic customers.”

“It could come as a surprise to some people that the Greens have the most pro-competition energy policy of all three political parties, but for us it’s about finding solutions based on sound evidence not political expedience.”

“About 40 per cent of an electricity bill is for the wholesale price of the power, and about 5 per cent is the retail price.”

“Unless you address wholesale competition, you’re just tinkering around the edges.”

“Our proposal for a trading rooms to be introduced into Hydro Tasmania subject to a cost benefit analysis, would lead to meaningful wholesale competition, not just retail competition, in order to bring prices down.”

“The Greens have chosen not to back the proposal to establish three separate gentraders, because of the prohibitive cost and concerns that it could lead to privatisation of Hydro Tasmania.”

Mr Booth also noted the recent comments by the Prime Minister about the need for urgent reform of the National Electricity Market to avoid further unnecessary increases in electricity bills.

“The Prime Minister has indicated that she has written to state Premiers asking for the advice from a range of ongoing NEM reviews to be drawn together and on the table for First Ministers to consider, and that she wants solutions on the table for COAG to adopt by the end of the year.”

Download: Tasmanian Greens MPs Reply to the Electricity Supply Industry Expert Panel:

Aug17_Tas_Greens_Response_Energy_Review_ATTACH.pdf

• HYDRO’S WHOLESALE ENERGY MONOPOLY IS HURTING CONSUMERS
Liberals Can’t Be Trusted Not to Privatise Hydro – They Already Tried

Kim Booth MP
Greens Energy Spokesperson
Saturday, 18 August 2012

The Tasmanian Greens today urged both Labor and Liberal parties to consider seriously their proposed package to reform the state’s electricity supply sector and bring down power prices for homes and businesses.

Greens Energy spokesperson Kim Booth MP today dismissed desperate and uninformed claims that the plan would lead to the privatisation of Hydro Tasmania.

“If the Liberals had actually understood our policy, they would see that not only will it deliver cheaper power prices but will make it more difficult to privatise Hydro,”

“Given the Liberal Party’s attempt in 1998 to sell Hydro Tasmania, it’s actually the Liberals who can’t be trusted to keep these assets in public hands.”

“Our position has not changed on retaining Hydro in public hands, and our trading room proposal was designed to address concerns that the gentrader recommendation could lead to privatisation.”

“The Greens’ proposed package is the only one so far that seeks to address the need for wholesale retail competition in order to really bring down power bills, unlike both Labor and Liberal who are both just looking at the retail end.”

“Some people might not realise that about 40% of their power bill comes from the wholesale price, while about 5% can be accounted for by the retail price.”

“Any serious attempt to create an efficient, competitive energy sector in Tasmania must include measures to address Hydro’s wholesale monopoly.”

“The challenge for both Labor and Liberal is to explain why they wish to prevent competition and why they want power prices to remain unnecessarily high.”

“Cost of living pressures are challenging more and more in the community, and one of the main contributors to that is people’s power bills, either in the domestic or in the business sector.”

“It is the Greens energy package which sets out an achievable plan for meaningful power price reform in the short term, and a long term clean green energy future,” Mr Booth said.