PIAA responds to energy report

The Finkel report into the National Electricity Market has been released, with The Printing Industries Association of Australia calling for political unity and fair consideration to effectively deal with energy security issues.

 

Across the political spectrum, Labor has called for bipartisanship to put the recommendations in place, while infighting in the Coalition party around a Clean Energy Target (CET) between former Prime Minister Tony Abbott and Minister for Industry, Innovation and Science Craig Laundy around what a CET would do for energy costs.

 

A CET would force companies selling electricity to provide a set percentage of power from low emissions technology, like renewables or efficient gas.

 

With the price of electricity having reached unsustainable levels for the manufacturing sector, and printers suffering, Printing Industries’ is demanding an end to political arrogance.

 

Andrew Macaulay, CEO, Printing Industries’ says, “Despite early statements suggesting political unity, political parties and interest groups seem to be staying in their various climate-corners. Given our energy situation, this political arrogance is breathtaking.”

 

“Finkel is unlikely to have got everything right.  But people must take to time to digest his report and consider what should result.  Over a prolonged period political leaders have squandered opportunities to head off our energy crisis, delivering instead a mish-mash of diverging and sometimes destructive political wish-lists.  We can not afford any more of that.  Now is serious decision time.”

 

“Above all, the printing industry needs cheap and reliable energy. Beyond this, we will consult with members to ascertain their views on what should be done in the wake of the Finkel Report.”

 

Government chief scientist Dr Alan Finkel’s inquiry was triggered in the aftermath of the South Australia blackouts earlier this year, as the Federal Government seeked a reliable, secure supply of sustainable energy.

 

Macaulay says, “Finkel’s Report makes key assumptions to claim to be technology neutral with no prohibitions, just incentives for energy producers, plus that consumers will pay less.  

 

“However, these assumptions depend upon the level at which Parliament sets clean energy targets to replace current renewable energy targets.  This politically-set level will determine which producers get subsidies, whether coal is effectively cut out of the market and whether consumers will pay less.”

 

Finkel’s Report acknowledges that the adoption of renewable energy has caused security and reliability problems and suggests that any new provider of renewable energy must guarantee back-up supply (for example, by battery) and therefore reliability.

 

Finkel also recommends a new overarching bureaucracy – an energy security board to implement and coordinate national monitoring of security and reliability.

 

“The emerging crux of the political debate seems to be whether there must be a future for plentiful, reliable and cheap coal.  Arguably, Finkel’s nominated clean energy target will cut out coal.  A group of Coalition backbenchers, led by Tony Abbott, says that coal cannot be cut out.  Labor and the Greens essentially want an end to coal.  The Greens are not too keen on gas either.  None of this bodes well for a unified political outcome”, says Macaulay.

 

“Our early impression is that the Finkel Report could be positive.  But it will only be so if it results in unified political action”, says Macaulay.

 

The alternative to a CET would be an emissions intensity scheme (EIS). Under an EIS, high-polluting power stations would have to buy credits from companies running low-emission stations, a carrot-and-stick approach that rewards those doing the right thing, while forcing an extra cost on companies polluting.

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