27 January, 2017
NSW Government should punish ERM Power for undermining renewable energy targets
Nature Conservation Council calls on the NSW Government to intervene to stop ERM Power undermining renewable energy investment in regional NSW.
ERM Power revealed this week it had elected to pay a $123 million penalty charge to discharge its 2016 liability under the RET scheme rather than back renewables projects, as intended under the RET regulations. [1]
“That’s $123 million that should have gone to investment and jobs in our regional communities. Instead ERM Power has decided to waste that money on penalty payments,” NCC CEO Kate Smolski said.
“ERM has thumbed its nose at the people of NSW who want their government to drive a rapid transition to clean energy.”
The whole of NSW government sources its power from ERM, including the Education Department, which spends $228 million with the company. [2] The NSW government has two major contracts for purchasing electricity with ERM Power:
- The large sites contract (Contract 777) supplies retail electricity services and risk management for large sites (consumption over 100,000 kWh per annum). That contract is from 1 July 2015 to 30 June 2019, with an extension of up to 12 months available.
- The smalls sites contract (Contract 776) is for retail supply of electricity and GreenPower to the NSW Government and eligible customers (small sites) from 1 July 2013 to 30 June 2018. Extension options have already been exercised.
“Premier Gladys Berejiklian must act decisively and show there are consequences for companies that flagrantly undermine government policies designed for the benefit of its citizens.
“If ERM refuses to acquire the full quota of Large-Scale Generation Certificates as outlined under the act, Ms Berejiklian should terminate electricity supply contracts with ERM at the earliest opportunity.
“Investment in renewable energy reduces greenhouse pollution, brings down power bills, and creates jobs in regional NSW,” Smolski said.
“If ERM does not want to play a constructive part in the transition to clean energy, NSW should dump them and find a company that does.”
REFERENCES
[1] http://www.afr.com/business/energy/electricity/erm-power-penalty-exposes-flaws-of-renweable-energy-target-20170124-gtxz1l
[2] https://tenders.nsw.gov.au/doe/?event=public.cn.view&CNUUID=B216C49F-A10F-4102-1B7EC9AF3A897495
Tags
Climate and energy
Let others know about this issue