Energy Market

Greenhouse Regulation

In addition to green energy you may purchase through your energy retailer, your bills are subject to a range of green energy charges.

Regulation of green energy levels and greenhouse gas emissions related to your energy consumption is governed on both State and Federal level and affects consumers and retailers alike. Increasingly, regulation and voluntary schemes affecting the way energy is used attempt to provide incentive for end use investment in efficiency measures.

The complexity of the Australian regulatory framework is compounded by the fact that Australia lacks a cohesive national policy on energy or climate change issues, with each state responding differently to the challenges it presents. The amount you pay and the regulations governing your efficiency practice depends largely on the state you are in.

All Australian energy retailers are bound by the Federal Mandatory Renewable Energy Target (MRET) which requires that an increasing amount of energy be generated from renewable sources. Every customer in the market pays a levy for the MRET certificates bought on their behalf by their retailer. A similar scheme is proposed for Victoria from January 2007.

In QLD, A requirement has been placed upon all retailers selling electricity into QLD to source at least 13% of their electricity from new gas sources. Retailers buy certificates to demonstrate that they have complied with this legislated requirement. Failure to comply with this quota leads to penalties. Retailers recover the cost from QLD power consumers via their energy bill.

In NSW and the ACT, Energy retailers are also subject to state imposed Greenhouse Gas Abatement Schemes which require them to reduce their overall emissions levels to agreed levels by 2012. Under this scheme, retailers earn tradable Greenhouse Gas Abatement Certificates for investing in efficiency measures.

Across the various schemes operating today, meeting environmental regulatory imposts account for approximately 10% of every customer's retail energy spend. A renewable energy scheme is about to be implemented in Victoria, which is expected to bring similar costs to Victorian consumers.

For a snapshot of which greenhouse and renewable energy charges affect your bill, see the table attached below.

For more information about the impact of green charges on your bill, complete our online form, and we will be in touch with you directly.