POWER bills are set to treble by 2020 under government policies, yet Australia will still fail to meet the government's most cautious emissions targets, one of the country's biggest generators has warned.

The chief executive of Origin Energy, Grant King, says uncertainty about energy policy is driving up industry costs, but without a carbon price Australia will fail to meet a government target to cut 2020 emissions by 5 per cent from 2000 levels.

In a sweeping attack on the stalled debate over emissions trading, Mr King said indecision on carbon trading was deterring business from investing in all but the safest power plants, which are those powered by wind and gas.

Building these new plants requires hefty spending on infrastructure such as new power wires and poles.

But he said these costs had not been factored into the price of electricity.

''We think it's quite possible that by 2020 the cost of energy to consumers could be two to three times what it is today,'' he said at a business lunch in Sydney yesterday.

''Increases in transmission and distribution costs, driven by current policy settings, will substantially increase the cost of electricity to consumers.''

A trebling in power prices would push the average annual bill for Energy Australia customers to $3771, compared with $1257 now.

Energy Australia is the dominant government-owned retailer of electricity. NSW power prices are already set to jump by as much as 60 per cent in the next three years because of transmission and carbon costs, the Independent Pricing and Regulatory Tribunal said last month.

At the same time, Mr King said higher power costs would bring few environmental benefits, because emissions would remain stubbornly high until business received a clearer signal from government.

Relying solely on renewable energy and attempts to cut household power consumption was not enough to cut 2020 emissions by 5 per cent compared with 2000 levels, he said.

For example, meeting the 5 per cent target would require households to cut energy use by 20 per cent by 2020 and a doubling in the amount of renewable energy generation installed by 2020. This was a ''huge'' challenge for Australia, he said.

''We will fall well short of that target unless we go back and put in place policies designed to change the way we generate energy,'' he said.

The comments come as the federal government prepares to introduce the twice-rejected carbon pollution reduction scheme to the Senate as soon as next month.

Origin is viewed as a beneficiary of the scheme because it does not own any coal fired power plants, which are the biggest polluters.

Under the scheme the government plans to cut 5 per cent irrespective of what the rest of the world does, but it could lead to cuts of up to 25 per cent if a global deal on climate change is struck.

Few expect the bill to pass this year, prompting industry complaints they are stuck in no man's land.

''We do have a real problem - that our policymakers are avoiding the one area that has the greatest potential to make a change to carbon emissions in our system and that is the point of production,'' Mr King said.

Dear Customer

Integral Energy has had a significant increase in the number of enquiries, applications and meter installations for solar panel connections in N.S.W. This has created a high demand on our processing capability which is resulting in delays which could impact you for a limited period of time.

If you have had new metering equipment installed it is likely that there will be delays in processing the information provided to us by your Accredited Service Provider.

Our delay in processing your documentation is likely to have the following impact on you:

• 1.  You may not receive your account in the normal cycle that you are accustomed to.
• 2.  Your account details may not include readings from the additional metering equipment which actually exists at your home.
• 3.  As a result your account may not show the full details that you are expecting to be present on the account.

Please accept our apology for any inconvenience which you may experience, on a temporary basis, as a result of our processing delays.

Meters installed by Accredited Service Providers will be recording energy throughout, irrespective of when the metering information is entered into our billing system. Customers' accounts will include all energy recorded on their metering once the metering information has been processed.

Where an urgent need exists Integral Energy, Network Connections Branch will endeavour to assist in processing specific documentation to address your concerns. Please contact Paul Hardman in our Network Connections Branch whi will try to assist urgent need

From the Minister for Energy and Resources 

 

New hi-tech electricity meters will help drive more efficient energy habits.

 

The new meter program - to be rolled out for all Victorian households and small businesses over the next four years - will;

 

• significantly assist electricity distributors to identify any loss of supply, helping to speed up power reconnections
• remotely connect and disconnect electricity supply making it easier to switch energy retailers and move premises
• provide for accurate real-time readings of a customer's electricity use at 30 minute intervals, making it easier to monitor energy consumption, change behaviour and save money
• allow electricity retailers to offer more innovative tariffs and services
• mean far less estimated bills or staying in for meter readings

 

The Brumby Labour Government is taking action to help Victorians better manage their energy use and reduce their individual carbon footprint by equipping homes with new smart electricity meters.

 

Victoria is the first state to give the go-ahead for the widespread roll out of smart meters - a task which represents one of the most significant improvements to electricity infrastructure in the state's history.

 

This is a big project affecting 2.2 million homes, and 300,000 businesses, so we made sure that we've designed a system that brings best value to everyone involved.

 

Smart meters are a valuable tool for Victorian households and small businesses to manage their electricity use. Customers will be able to make decisions to save electricity, thereby reducing greenhouse gas emissions and also saving money.

 

Electricity companies will be able to read meters remotely  which will mean the end of estimated readings and will ensure Victorians receive more accurate bills as well as making it quicker and smoother to move house and have power reconnected.

 

These meters will also help electricity distribution companies to detect and locate power outages and restore power to homes more quickly.

 

Smart electricity meters are a key step towards future smart electricity grids which will make it easier for renewable energy to be fed into the grid and for the future widespread use of plug-in hybrid and electric vehicles.

 

An analysis of the costs and benefits of rolling out smart meters found that the project will deliver net benefits to Victoria of up to $700 million over the next 20 years.

 

For more information about smart meters or the Brumby Government's plans for energy, please visit www.dpi.vic.gov.au/smartmeters.

 

Your electricity distribution company (that is responsible for the 'poles and wires') is also responsible for putting in your new meter and will contact you directly to advise of the details and expected time-frame for the installation of smart meters in your neighbourhood.

 

You will receive further information from your local electricity distribution company regarding the installation of your new smart meter. If you have any queries regarding the installation at your premises, please contact Jemena Electricity Networks on 9937 6766.

 

Yours Sincerely,

Peter Bachelor MP

Minister for Energy and Resources