Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Hansard source

I thank Senator Wang. The government appreciate the intent of Senator Wang's amendment, but we do not agree with the amendment. We believe that implementing full exemptions for emissions-intensive trade-exposed entities addresses, through alternative means, most of the concerns raised about the self-generator provisions and that there is a risk the amendment could lead to some unintended consequences for some businesses. It is the government's view that the entities that generate and use their own electricity can seek exemption from RET liability under strict eligibility conditions to target genuine self-generation. To be exempted, electricity must currently be used within one kilometre of the point of generation or supplied via a dedicated line. The proposed amendment seeks to extend these exemptions by diluting the dedicated line test to allow third parties to be supplied under certain circumstances without voiding the self-generation exemption.

The issue this amendment attempts to deal with tends to be confined to large development projects on remote grids where the self-generator is undertaking an ET activity. Increasing the partial exemptions under the scheme for ET activities to a 100 per cent exemption, as proposed in the government's bill, will provide significant additional relief to these ET businesses. Expanding the self-generator exemption provides little additional benefit to the businesses.