Page 89 - Week 01 - Tuesday, 9 February 2016

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The government has amendments to the Planning, Building and Environment Legislation Bill 2015 (No. 2). It is an omnibus bill and the first amendment that we have here inserts an entirely new item into the bill. The government recently became aware of a minor drafting error in the wording of the electricity feed-in renewable energy premium rate determination 2011 (No. 1). This determination forms part of the ACT government’s rooftop solar feed-in tariff scheme.

The determination, together with the Electricity Feed-in (Renewable Energy Premium) Act 2008, establishes the amount that electricity retailers must pay micro and medium renewable energy generators for the electricity generated. Section 8 of the act sets out the required percentage of a specified premium rate to be paid. This determination sets out what the premium rate is.

The determination is a disallowable instrument. Specifically, the 2011 determination refers to the premium rate for micro renewable energy generators. The unintended effect of this is that the premium rate for medium renewable energy generators has not been set. The determination should not have referred to the micro category exclusively but should have referred simply to renewable energy generators.

This amendment corrects that omission and will ensure that the premium rate will apply to both micro and medium renewable energy generators under the act. This gives effect to longstanding government policy and how the scheme has actually been administered since its introduction. It should be noted that this amendment does not change the premium rate itself and, despite the drafting issue, the scheme has always operated on the basis that the premium rate specified for micro renewable energy generators also applied to medium renewable energy generators.

As a matter of necessity, the amendment has retrospective application. This is required to confirm that any payments made to medium renewable energy generators under the 2011 determination are, and continue to be, valid. Despite the retrospectivity, there is no unfairness associated with the amendment. This is because it validates past actions which were undertaken on the understanding that they were valid. The amendment confirms the expectations of those who are impacted by validating the application of the applicable premium rate that has been government policy since 2011 and upon which the scheme has operated since. The amendment corrects an error to give legal effect to the accepted and widely understood position that the premium rate in the 2011 determination applies to all renewable energy generators.

The ACT government’s rooftop solar feed-in tariff scheme has been a remarkable success. Approximately 10,000 solar systems have been installed across the territory, providing renewable energy from solar panels. The scheme has generated jobs in the ACT economy and contributed to a dramatic fall in solar panel prices and installation costs, making solar renewable energy a more accessible and attractive option.

This amendment will not affect the operation of the scheme or impact on any of those who participate in it. I thank members for their support of this.


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