E&OE….
Topics: Bill Shorten’s latest plan to hike power bills
DAVID SPEERS:
Greg Hunt, thank you for your time. Now, you say that increasing the Renewable Energy Target to 50 per cent as proposed by Labor will push up power prices. Now, what do you base that on?
GREG HUNT:
Well, it's not just me. What we see is that the CFMEU Tony Maher expressly, clearly, absolutely said that this plan, this specific plan would drive up electricity prices for houses and also for business and manufacturing in particular.
DAVID SPEERS:
So, you're putting your faith here in the CFMEU?
GREG HUNT:
No, no. By definition, why would you need to put in a law if this would have been cheaper in any event? The very nature of everything we've seen is that it's going to involve additional costs. But at the end of the day, this is a diversion from the carbon tax.
We know last week – you know, that there was a massive leak from the shadow cabinet of their plan for a carbon tax which will be a massive hit on electricity prices, this is an additional hit. But what they're trying to do is divert from what was a massive leak about a major hit on electricity prices.
DAVID SPEERS:
Do you concede your own review of the Renewable Energy Target, the Warburton Review finds that, if anything, the Renewable Energy Target pushes down wholesale electricity prices?
GREG HUNT:
No, what you're doing is misrepresenting because the Warburton Review looked at both wholesale and retail and when you put the two together the net impact was an increase.
DAVID SPEERS:
Well, with respect, didn't it find that that couldn't be determined, the net impact?
GREG HUNT:
No, the figures are express, clear and absolute within the review but more than that, this is a 50 per cent figure and so what you see is of course it's going to have massive costs but it's simply a minor issue by comparison with the carbon tax. So, this will be a major outcome in terms of the cost for business and the cost for households but the carbon tax, which is their written plan, their spoken plan and is still their plan, is going to have a far greater outcome.
DAVID SPEERS:
Okay, alright. I'm just wanting to focus on the RET announcement today and you have said this will have major impact on price. What do you base that on?
GREG HUNT:
Well, let's see what their plan is because all we've seen at this stage is a thought bubble that's come about in the last week.
DAVID SPEERS:
But I'm asking you, Minister, you've made a judgement on this already based on what?
GREG HUNT:
Let's be absolutely clear, the Warburton Review showed that there were billions and billions of dollars that were required to achieve what had been the 41,000 gigawatt hours. That's why we've just been through 16 months of review and negotiation and then the Labor Party agreed on the 33,000 gigawatt hour target which will have to be multiplied manyfold because to achieve this outcome, isn't just a doubling, it's a multi-fold increase in the number of large scale renewables.
DAVID SPEERS:
Okay. But we are seeing great potential, particularly with solar, developments in terms of battery storage as well. Other countries are starting to move on renewable energies, even Indonesia are setting a target of 25 per cent renewable energy by 2025.
GREG HUNT:
Given you say that, why would you need to put in law a change for something which Labor asserts would be lower cost?
DAVID SPEERS:
Why do we have the RET at the moment?
GREG HUNT:
Because renewables are higher cost and they need the assistance, that's the answer and I think you've just given us the answer. We have a RET which I support, which we support at 23.5 per cent but that 23.5 per cent includes the large scale renewables, it includes the pre-existing hydro and it includes the small scale rooftop solar.
This is going to lead to a massive, massive increase in the target for large scale renewables, a many fold increase and they've got to explain where, by whom, how much, what will be the impact on households. They didn't have this plan a week ago. They had a major detailed shadow cabinet submission which didn't have this 50 per cent figure.
And so, what we see here is something done on the run to hide from the carbon tax – although they call it an ETS – it's the same thing. Something done on the run to divert from higher electricity prices but where is their analysis for their policy and their plan – but the whole reason we have a Renewable Energy Target is because if renewables were cheaper – and I love them, I support them, I believe in them, but if they were cheaper, then they wouldn't need a mandated target.
DAVID SPEERS:
Alright. Environment Minister Greg Hunt, appreciate your time. Thank you.
GREG HUNT:
Thanks.
(ENDS)