Energy-sapping bid

States, territories haggle over details of national guarantee

THE Turnbull Government’s signature energy plan is still staring down the barrel of demands from states and territories who say changes are needed before endorsing it.

Energy ministers reached a compromise on the National Energy Guarantee yesterday, agreeing to continue discussions while opening up draft legislation for public consultation as early as next week.

But Victoria, Queensland and the ACT have refused to endorse the policy as it is, wanting bottom lines met before they’re on board.

Victorian Energy Minister Lily D’Ambrosio wants a requirement the emissions reduction target can only ever be increased, that it be reset every three years and be set by regulation.

Queensland and the ACT want changes to the “inadequate” emissions target. The current policy sets the target at 26 per cent until 2030, with a review in 2024 and five yearly reviews beginning from 2030.

There was unanimous support among ministers for continued work on the policy, and for a further teleconference after Tuesday’s party room meeting before a decision on releasing the draft legislation.

The draft legislation would implement changes to the National Electricity Law and must be passed by the South Australian Parliament for the guarantee’s reliability requirements to come into effect.

It, and federal legislation to set the target for emissions reduction in the electricity sector, must undergo four weeks of public consultation before Parliament can consider it.

South Australian Energy Minister Dan van Holst Pellekaan said if legislation made it to State Parliament by October it should pass before the end of the year.

Federal Labor energy spokesman Mark Butler welcomed the progress but would not yet say if Labor would back the policy through Parliament.

“We haven’t even seen draft legislation,” he said.