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ActewAGL – now buys renewables at 7c a kilowatt hour – to fight a plan to make it under the proposed ACT law, to pay homes, 52c a kilowatt hour

Posted by gmarkets on 27 September, 2007

ActewAGL’s general manager of retail, Ivan Slavich, said the 52c a kilowatt hour tariff was not a wise use of money. “It sounds really good and it’s very popular, but it’s not very cost effective,” he said. He said “The tariff would artificially favour domestic solar power at the expense of more efficient renewable energy sources such as wind farms. Slavich said ActewAGL supported the use of renewable energy but not this plan. Producers of renewable power – like solar, biomass and wind – are paid 7c a kilowatt hour by ActewAGL, which is partially owned by the ACt Government. Under the proposed law, solar power producers would be paid 52c a kilowatt hour. “That’s a massive increase,” Slavich said.

Government backbench Bill: Canberrans would pay for the premium tariff through a levy on their electricity bills, and Slavich said this might not be popular. Government backbencher Mick Gentleman, who is behind the premium tariff plan, said he was disappointed in ActewAGL’s response but would continue to push the plan. He said the tariff aimed to create an incentive for people to produce renewable energy in their homes in Canberra. It did not aim to subsidise any renewable energy plants interstate. “We’re trying to do this within our community,” he said. He said the cost to consumers would be small – estimated at $1-2 a month at first, possibly growing to 5 per cent of the electricity bill.

The Canberra Times, 7/8/2007, p. 1

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