Re­port in­ves­ti­gates en­ergy

Central and North Rural Weekly - - COLUMN -

❝im­pact The bill based on the pro­posed rate of re­turn method­ol­ogy cal­cu­lated in the Sapere Re­port is sig­nif­i­cant...

THE Aus­tralian In­dus­tries En­ergy Task­force has re­leased an in­de­pen­dent re­port high­light­ing a bro­ken en­ergy sys­tem.

The re­port, un­der­taken by the Sapere Re­search Group, showed prof­its made by elec­tric­ity net­works were more than $2.6 bil­lion higher than they should be, ac­cord­ing to the Aus­tralian En­ergy Reg­u­la­tor’s rate of re­turn guide­line.

Queens­land Farm­ers’ Fed­er­a­tion pres­i­dent Stu­art Ar­mitage said in­creased en­ergy prices had placed enor­mous strain on farm­ers.

“The re­search shows the AER’s rate of re­turn data strongly im­plies the method used to de­ter­mine the al­lowed rate of re­turn, ma­te­ri­ally over-es­ti­mates the sys­tem­atic risk ex­po­sure of the net­works and breaches the rate of re­turn ob­jec­tive in the Na­tional Elec­tric­ity Rules,” Mr Ar­mitage said. “The bill im­pact based on the pro­posed rate of re­turn method­ol­ogy cal­cu­lated in the Sapere Re­port is sig­nif­i­cant, adding per­haps 3-5 per cent to the typ­i­cal re­tail bill.”

QFF is call­ing for im­me­di­ate ac­tion.

“Un­sus­tain­able elec­tric­ity price in­creases and lag­ging pro­duc­tiv­ity will re­sult in more ex­pen­sive food and fi­bre.”

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