Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The purpose of the Energy Efficiency Opportunities (Repeal) Bill 2014 is to repeal the Energy Efficiency Opportunities Act 2006. Savings from the program were announced in the Mid-Year Economic and Fiscal Outlook, on 17 December 2013.

The bill repeals the act, which took effect on 1 July 2006. The program requires large energy-using businesses to assess their energy use and identify cost-effective energy savings opportunities. The program is mandatory for organisations that use over 0.5 petajoules of energy annually and may be undertaken voluntarily by medium energy-users. This applies to over 300 corporations. For those corporations falling within the program, the act imposes mandatory compliance and reporting obligations.

This government acknowledges the burden regulatory programs, such as the Energy Efficiency Opportunities Program, impose on business and has committed to cutting red tape. Repealing the Energy Efficiency Opportunities Act 2006 will save Australian businesses $17.7 million per year.

Australian businesses are well aware of the impact of higher electricity prices on the bottom line.

Since 2006, when the Energy Efficiency Opportunities Program was introduced, Australian businesses, including Australia's largest energy users, have worked to develop energy management capabilities that have strengthened their resilience to rising energy prices and other changing economic conditions.

Changing conditions and increasing awareness of energy efficiency have lifted energy management capability and responsiveness, with many corporations reporting that key elements of the EEO Program are now standard business practice.

While the Energy Efficiency Opportunities Program has played an important role in this process and resulted in the development of a range of energy efficiency projects which companies can choose to implement based on energy prices and their specific circumstances, it has now become superfluous given the actions businesses and large energy users are already taking of their own accord to reduce energy costs and therefore reduce business costs.

The energy market and energy costs have changed considerably since the program's inception in 2006. As a result of these changes, including increasing energy costs, businesses have developed a suite of mechanisms for better energy management. Energy productivity is now core business for Australian industry and industry is best placed to define the processes and make decisions on how best to manage energy.

The Emissions Reduction Fund will help businesses and industry to take direct action to reduce emissions and improve their energy efficiency. The government will continue to explore options for improving energy productivity through the current energy white paper process.

In addition, energy productivity is also being considered by the Council of Australian Governments (COAG) Energy Council. Work is underway to review priorities in relation to national coordination on energy productivity.

Specifics of the bill

I now turn to the specific aspects of the bill.

The bill repeals the Energy Efficiency Opportunities Act 2006.

It provides for a retrospective date of 29 June 2014 to come into force. This will provide clarity to companies and stakeholders that reporting and assessment obligations under the Act will cease on 29 June 2014. This includes variations to existing assessment plans under new developments and expansions which were due to be submitted on 30 June 2014, and which will no longer be required. This is a practical action that shows the government is committed to reducing regulation for Australian business.

Debate adjourned.

Ordered that the second reading be made an order of the day for the next sitting.