It has also published an updated non-binding estimate of the STP and default RPP for the 2014 and 2015 years. The STP and RPP effectively define the scale of the electricity retailers’ liabilities under the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET) respectively. These costs are passed through by electricity retailers to customers.
What has changed?
The binding 2013 STP is 19.7%, an increase of almost 1% from the non-binding estimate of 18.76% published in October 2012.
The non-binding 2014 estimate is 8.98% up from 7.69% in October.
The actual 2013 RPP is 10.65%, slightly up from the default figure of 10.42%.
The 2014 default figure is now 9.46% up from the previous 2014 default figure of 9.25%.
As retailers have in the most part been using the estimate/default figures for electricity bills in 2013 to date, there may be an adjustment to reconcile charges with the final targets.
Energetics can assist by checking if any adjustment is calculated in your electricity contract.
Government accepts bulk of Climate Change Authority recommendations
The Hon Greg Combet, Minister for Minister for Climate Change and Energy Efficiency has announced that the government will accept the vast bulk of the recommendations from the Climate Change Authority (CCA) Renewable Energy Target Review.
The key elements of the government’s response are:
No change to the targeted renewable energy generation underpinning the LRET, keeping it at the current 41,000GWh by 2020.
No change to 100kW size threshold for SRES, although the CCA recommended the threshold be reduced to 10kW.
Reviews of the Renewable Energy Target to be pushed out to every four years instead of two.
Minister to retain power to change SRES price cap, to be able to quickly act to contain any blow-out in the costs associated with support for small-scale renewables.
The coalition have recently restated that they support the 20% Renewable Energy Target, but that it would be subject to review in 2014, “in light of changes to electricity demand”.
For further information and advice on how these increases to renewable scheme charges effect your business, please contact one of our experts.