|Policy Type:||Regulatory Instruments|
|Agency:||Ministry of Energy and Utilities, Government of New South Wales|
|Legal References:||"ELECTRICITY RETAILER GREENHOUSE BENCHMARKS ? A SUMMARY"; Ministry of Energy and Utilities, Government of New South Wales|
On 8 May 2002, the state Premier and the Minister for Energy announced that the New South Wales Government will be implementing an enforceable greenhouse benchmarks scheme for electricity retailers. The Electricity Supply Act 1995 will be amended to implement a framework to have mandatory greenhouse gas reduction targets included in their retail licences (GGRT). The framework will include a supporting enforcement regime. Licence obligations will be framed in terms of emissions performance against individual benchmarks apportioned according to market share. The benchmark has been set as a 5% reduction in per capita greenhouse gas emissions from 1989/90 levels by 2007. This equates to a benchmark of 7.27 tonnes per capita in 2007. The scheme will commence on 1 January 2003, with 2003 being the first year of compulsory compliance. Annual targets will follow a linear path to achieve the set benchmark in 2007. The target will be maintained at that level until 2012 or until reviewed. A penalty (expressed in $/tonne of carbon dioxide equivalent) will be imposed on retailers and other liable parties (market customers) to the extent of the excess of their greenhouse gas emissions (as measured by a methodology approved by the Minister for Energy) above their greenhouse gas emissions benchmark for each year from 1 January 2003. The penalty will be set at least as high as the marginal cost of abatement to encourage compliance, but not above $ 15 per tonne.
Last modified: Tue, 09 May 2017 16:51:53 CEST