Electricity and Other Legislation (Batteries and Premium Feed-in Tariff) Amendment Bill 2018
Plain English Summary
Overview
This bill makes three changes to Queensland's electricity laws: it sets clear rules so Solar Bonus Scheme customers can add batteries without losing their 44c/kWh feed-in tariff, it lets apartment and caravan park residents choose their own electricity retailer, and it allows regional households and small businesses to return to Ergon Retail after switching to a private retailer.
Who it affects
Around 240,000 Solar Bonus Scheme customers get certainty about adding batteries. Embedded network residents in apartments, caravan parks and retirement villages gain retail choice and access to the Energy and Water Ombudsman. Regional households and small businesses can switch back to Ergon Retail.
Solar Bonus Scheme and batteries
Clarifies the rules for the approximately 240,000 customers receiving the 44c/kWh Solar Bonus Scheme feed-in tariff. Customers can install batteries or additional generators that only operate when the solar system is not generating (e.g. at night) without losing their tariff. However, installing systems that export to the grid, run at the same time as the qualifying solar system, or oversizing panels beyond the inverter's approved capacity will end eligibility.
- Batteries can be installed if they only supply the home when the solar system is not generating (e.g. at night)
- Additional generators are permitted if they do not export to the grid or run at the same time as the qualifying solar panels
- Oversizing solar panels beyond the inverter's approved rated capacity ends eligibility
- Customers who already installed batteries or oversized their systems before the bill's introduction are grandfathered
Embedded network retail competition
Enables electricity customers in embedded networks -- such as apartments, caravan parks and retirement villages -- to choose their own retailer under a national framework that commenced on 1 December 2017. These customers also gain access to the Energy and Water Ombudsman for dispute resolution.
- Embedded network customers can now choose any authorised electricity retailer
- Access to the Energy and Water Ombudsman extended to embedded network customers
- Queensland legislation aligned with National Electricity Rules on embedded networks
Regional customer choice
Removes the 'non-reversion policy' that prevented small customers in regional Queensland from returning to government-owned Ergon Retail after switching to a private retailer. This was part of the Queensland Government's Affordable Energy Plan announced in October 2017. The estimated cost to government is $3-5 million per year.
- Small customers who switched to a private retailer can return to Ergon Retail
- New occupants at properties where a previous occupant switched can now choose Ergon
- Large customers remain subject to the non-reversion policy to maintain retail competition
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee15 Feb 2018View Hansard
Referred to State Development, Natural Resources and Agricultural Industry Development Committee
The State Development, Natural Resources and Agricultural Industry Development Committee examined the bill over four weeks, receiving seven submissions and a public departmental briefing. The committee recommended the bill be passed, building on the thorough work of the previous parliament's Public Works and Utilities Committee which had reported on a substantially similar 2017 version of the bill. Stakeholders raised concerns about the Solar Bonus Scheme oversizing provisions, compliance costs for embedded network operators, and the need for better education campaigns for contractors and consumers. A Statement of Reservation was filed but its text could not be extracted from the report.
Key findings (5)
- The bill addressed three areas: clarifying Solar Bonus Scheme rules around batteries and oversizing, enabling retail competition in embedded electricity networks, and removing the non-reversion policy for small regional customers
- The department estimated approximately $1 billion in additional costs could be incurred by the Solar Bonus Scheme if the proposed changes were not implemented, with about $900 million attributed to oversizing
- Master Electricians Australia raised concerns about the oversizing definition differing from industry understanding and recommended a 5 per cent compliance tolerance for warranty panel replacements, which the department agreed to handle through pragmatic compliance rather than legislation
- Stakeholders including the Queensland Farmers' Federation and individual submitters supported removing the non-reversion policy, which had prevented regional small customers from returning to Ergon Retail after switching to a private retailer
- The committee was satisfied the retrospective application of the Solar Bonus Scheme amendments to the bill's introduction date was justified to prevent customers from exploiting ambiguity in the law
Recommendations (1)
- The committee recommends the Electricity and Other Legislation (Batteries and Premium Feed-in Tariff) Amendment Bill 2018 be passed.
Committee report tabled
▸Second Reading20 Sept 2018View Hansard
▸19 members spoke15 support4 mixed
Introduced the bill as Minister for Natural Resources, Mines and Energy. Outlined its three main purposes: clarifying the Solar Bonus Scheme regarding new technologies, enabling retail competition in embedded networks, and removing the non-reversion policy for small regional customers.
“The bill will give participants in the Solar Bonus Scheme the necessary confidence to invest in new technology, assured that they can continue to receive the tariff as long as they remain eligible.”— 2018-09-20View Hansard
As shadow minister, stated the LNP would not oppose the bill but was heavily critical of the government's energy policies, the Solar Bonus Scheme's cost blowout, and the incomplete removal of the non-reversion policy which still applies to large customers.
“Labor was right to copy the LNP's commitment to scrap its non-reversion policy, which prevented consumers from returning to a government owned electricity provider once they signed up with a different retailer. Unfortunately, it overlooked the detail of the LNP's policy and has misled voters again.”— 2018-09-20View Hansard
Spoke as committee chair, outlining the committee's recommendation that the bill be passed. Explained the bill's provisions regarding the Solar Bonus Scheme, embedded networks and the non-reversion policy.
“The committee recommends the Electricity and Other Legislation (Batteries and Premium Feed-in Tariff) Amendment Bill 2018 be passed.”— 2018-09-20View Hansard
Supported the bill as a committee member, highlighting the success of solar uptake in Queensland and the need to close loopholes around oversizing of solar panel systems while still encouraging renewable energy.
“We on this side of the House know that renewable energy is critical to customers seeing savings on their power bills.”— 2018-09-20View Hansard
Supported the bill as a committee member, noting Bundaberg leads Australia in solar panel installations. Welcomed the clarification of the Solar Bonus Scheme and the removal of the non-reversion policy for small customers.
“As a committee member and as the state member for Bundaberg, I support the passing of this bill based on the positive effects the amendments will have on Bundaberg and regional Queensland.”— 2018-09-20View Hansard
Supported the bill, noting he had chaired the previous committee that considered the earlier version of the bill in the 55th Parliament. Explained the Solar Bonus Scheme clarifications and the non-reversion policy changes.
“This was good legislation in the last parliament. It is good legislation in this parliament.”— 2018-09-20View Hansard
Supported the bill but criticised the government's handling of late amendments relating to the Queen's Wharf Brisbane development, which he argued demonstrated incompetence and should have been addressed years earlier.
“I can assure those opposite that the LNP will be supporting these amendments because we know that they should have happened in the first place.”— 2018-09-20View Hansard
Supported the bill as Minister for Health, speaking about the government's record on renewable energy and contrasting it with the Newman government's approach to renewables.
“With this bill, we will support the next wave of renewable energy, encouraging more people to take up solar and help regional Queenslanders save on their power bills.”— 2018-09-20View Hansard
Stated the LNP would support the bill but was heavily critical of Labor's energy policies, particularly the impact of electricity costs on primary producers and small businesses. Advocated for retaining irrigation tariffs and extending the non-reversion policy removal to large customers.
“If farmers cannot afford to irrigate because it costs too much in electricity, we are not going to have much of a primary industry in Queensland.”— 2018-09-20View Hansard
Supported the bill as Minister for Transport and former energy minister, highlighting the government's renewable energy policies and the Powering Queensland Plan. Criticised the LNP's energy record in government.
“From this government we see sensible, evidence based energy policy, as opposed to the record of those opposite.”— 2018-09-20View Hansard
Stated the LNP supports the bill but expressed frustration about electricity issues facing regional constituents, criticising the Solar Bonus Scheme's cost and arguing renewable energy investment should have targeted regional industries rather than suburban rooftop solar.
“As previous speakers have noted, the LNP is supporting this bill because to do otherwise would have severe financial consequences on the state of Queensland.”— 2018-09-20View Hansard
Supported the bill as Minister for Employment and Small Business, emphasising the benefits for small businesses in reducing energy costs and gaining clarity on the Solar Bonus Scheme and embedded networks.
“The Palaszczuk government is committed to making energy more affordable for Queensland small businesses and this bill will help us do it.”— 2018-09-20View Hansard
Supported the bill, welcoming the removal of the non-reversion policy for small customers. Shared examples from her electorate of businesses disadvantaged by the existing policy, including a McDonald's restaurant paying double the electricity costs of neighbouring stores.
“I welcome the amendments that remove the non-reversion policy for residential and small customers, thereby giving them the option of returning to Ergon Retail.”— 2018-09-20View Hansard
Supported the bill as Minister for Police, defending the government's approach to the non-reversion policy and criticising the opposition's inconsistency on the issue.
“While I understand the problems some large businesses face in the retail market, the drivers for removing the non-reversion policy are not as strong in the large customer market as they are for small customers.”— 2018-09-20View Hansard
Supported the bill but raised concerns about lack of clarity for solar installers regarding panel replacement rules, the incomplete removal of the non-reversion policy, and unresolved issues with embedded networks in mixed-use developments.
“I call on the minister to do more than just say that there will be a pragmatic approach taken. He should give us the guidelines and give us certainty so that people can invest and know that, if they are fixing a system in this way, they will not get pinged.”— 2018-09-20View Hansard
Stated the LNP will not oppose the bill but criticised Labor's Solar Bonus Scheme as a major policy failure costing over $4 billion. Called for greater action on electricity prices and competition in the market.
“At least with the passing of these changes today we can save the Queensland economy from a further estimated blowout of over $1 billion.”— 2018-09-20View Hansard
Supported the bill to protect the state from further cost blowouts and address ambiguity in the Solar Bonus Scheme. Raised concerns about Labor's history of selling electricity assets while accusing the LNP of the same.
“The LNP will support the amendments contained in this bill as we want to protect the state from further cost blowouts and ensure areas of doubt within the Solar Bonus Scheme are addressed.”— 2018-09-20View Hansard
Supported the bill but highlighted the plight of constituents along the Queensland-New South Wales border who are on the New South Wales electricity system and cannot benefit from the non-reversion policy changes or access Ergon Energy.
“The LNP members support the amendments contained in the bill, but we stress that it is only on the basis that the bill will help protect the state from further cost blowouts.”— 2018-09-20View Hansard
Made a brief contribution supporting the bill while criticising the government's energy policies and the impact of rising electricity costs on Gold Coast constituents and small businesses.
“This bill is a reflection of the fact that amendments are required to bail Labor out of the mess that it has created when it comes to energy in this state.”— 2018-09-20View Hansard
▸In Detail20 Sept 2018View Hansard
Minister's amendments Nos 1 and 2: Amendment 1 corrected cross-references in the schedule modifying the National Energy Retail Law. Amendment 2 inserted a new Part 5 amending the Queen's Wharf Brisbane Act 2016 to extend the declaration area to include PDA-associated land, enabling the pedestrian bridge connection to South Bank.
Minister's amendment No. 3: Amended the long title of the bill to include reference to the Queen's Wharf Brisbane Act 2016.