New Environmental Obligations in Queensland and the ACT

01 May 2005Archived News Climate Change Matters

Both Queensland and ACT governments have introduced new environmental obligations relating to electricity consumption as of 1 January 2005. Most existing electricity contracts will contain a provision to allow for the pass through of additional charges to cover the retailers' costs of compliance under these new schemes. Basic details of the schemes are as follows:

 

 

The ACT Greenhouse Abatement Scheme

The scheme mirrors the NSW Greenhouse Abatement Scheme (2003), using the same certificates and sharing registry and accreditation processes.
The scheme requires electricity retailers to meet mandatory targets for reducing greenhouse gas emissions from 2005 until 2012.

The targets can be met by either:

  • Generating certificates through accredited activities; or
  • Purchasing certificates from other accredited parties.

Two government bodies administer the Scheme:

  • Scheme Regulator - the ACT Independent Competition and Regulatory Commission (ICRC); and,
  • Scheme Administrator - the NSW Independent Pricing and Regulatory Tribunal (IPART).

 

The Queensland 13% Gas Generation Scheme

Under the scheme Queensland electricity retailers and other liable parties will be required to source at least 13% of their electricity from gas-fired generation for the next 15 years.

The scheme is designed to:

  • Diversify the State's energy mix towards the greater use of gas
  • Encourage the development of new gas sources and infrastructure in Qld
  • Reduce greenhouse gas emissions from the Qld electricity sector.

Eligible fuels are:

  • Natural gas
  • Coal seam gas (including waste coal mine gas)
  • Liquefied petroleum gas
  • Waste gases associated with conventional petroleum refining

Electricity generated by an accredited generator using these fuel sources will be eligible to create Gas Electricity Certificates (GECs), which are the tradable rights that liable parties will be required to surrender to the Regulator to meet their obligation.

To ensure that the incurred charges passed through by retailers for these new obligations are reasonable and fair, end-users should check these charges at the contract negotiation stage. Energetics can check these charges at contract negotiation stage, through the use of our comprehensive 'Request for Proposals' methodology, or for existing contracts through benchmarking.

For further information on these new environmental obligations, please refer to the following websites:

http://www.energy.qld.gov.au/13percentgas
http://www.icrc.act.gov.au/actgreenhousegasabatementscheme.html

 

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