Council warns electricity costs will rise under current RET

THE Gillard Government is unlikely to make any changes to the Renewable Energy Target, after the final report from the Climate Change Authority largely endorsed the scheme.

After nearly six months of consultations and analysis of how the RET had performed since it was introduced in 2001, the report was released on Wednesday.

It essentially endorsed the current scheme, recommending no changes be made to the RET if it was to achieve the target of 20% of the nation's electricity coming from renewable energy by 2020.

The lack of changes, the report said, would also help to ensure business certainty in future years, as well as deliver the target.

Climate Institute called for bipartisan support of the program, while the Business Council of Australia warned electricity would continue to cost more under the scheme.

BCA chief executive Jennifer Westacott said falling energy demand was the driving factor of the growth of how much energy came from renewable technology, rather than actual generation capacity.

"Households do not want to be paying any more than they have to for electricity and business can ill afford to absorb unnecessary added costs at a time when many of them are under extreme competitiveness pressures," she said.

Climate Institute deputy chief executive Erwin Jackson said it was important to stay the course on the RET.

"Calls from some major vested interests to cut the target ignore the fact that this wouldn't actually make it cheaper for consumers," he said.

"The costs of clean energy are decreasing, not increasing.

"Cutting the target increases the risks for investors, increases our reliance on coal and gas, and increases pollution.

"All of these factors ultimately translate into higher power prices."


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