States hold off support for National Energy Guarantee

States hold off support for National Energy Guarantee

The Federal Government’s plan to push through the National Energy Guarantee (NEG) without change and without compromise has today been derailed by State and Territory Governments.

While agreeing to keep talking, States have insisted on seeing detailed legislation and several have set ‘red line’ conditions before they will lock in behind the NEG.

This is a massive win for all of us - and what we have been calling for.

Victoria has released a strong statement, saying it will not support the NEG unless the following contains are met:

  • Emission reduction targets can only increase over time and never go backwards
  • Targets need to be set in regulation (already rejected by Minister Frydenberg)
  • Targets need to be set every three years, three years in advance
  • A transparent registry is at the heart of the NEG

State and Territory Governments have asked the Federal Government to get its house in order first, before determining a position on the NEG. 

That is exactly the right strategy.

COAG Energy Ministers will have another discussion after the Coalition Party Room meeting on Tuesday.

After that, they may agree to have the State NEG legislation and the Commonwealth draft legislation released for public comment.

The Smart Energy Council calls on all State and Territory Governments to hold the line, unpack the detail, set out their own ‘red line’ conditions, and not be bullied into passing the NEG, which remains, in its current form a dud policy.

The current NEG does not reduce power bills or emissions and won’t stimulate investment in renewable energy.

There is a lot of work to do to whip the NEG into shape before it’s worth considering.

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