[Greens-Media] MARK PARNELL MLC: $350,000 Solar Rip-off

Friday 25th July, 2008

$350,000 Solar Rip-off


Greens MLC Mark Parnell has accused electricity companies of using the
introduction of the solar feed-in premium laws to make a windfall profit
at taxpayers' expense, at the same time as ripping off households who
produce power from the solar panels on their roof.

Before July 1, when the scheme commenced, companies like Origin and AGL
used to pay households for the electricity they produced from their
solar panels. Since July 1 the retailers have chosen to replace what
they were already paying to households rather than making the new
44c/kilo watt hour premium additional - which was the intention of the
feed-in law scheme.

This will potentially deliver a windfall profit of about $350,000 (and
possibly much higher) to big energy companies - money that should be
going to households as an incentive to encourage more people to install
solar panels, not as a subsidy to big energy retailers.

"Households doing the right thing by investing in solar cells are being
dudded, and ordinary South Australians, who are paying extra to fund the
feed-in scheme, have every right to be angry," Mr Parnell said.

"The feed-in incentive should be on top of, not replace, what the
electricity retailers were already paying. Otherwise, South Australian
electricity consumers are effectively paying almost half of the feed-in
law benefit directly to the big end of town, not to the householder with
the panels.

"Electricity retailers were quite happy before July 1 to pay for the
power generated from household solar cells. Now, some electricity
retailers are using the feed-in laws as an excuse for the rest of the
community to pick up the tab. They used to pay, now they don't pay a
cent. That's just not fair.

"They are collecting windfall profits while handballing responsibility
for climate change action to the rest of the community.

"These big energy retailers must be rubbing their hands with glee. If
they won't do the right thing and pay their fair share, they should be
named and shamed," Mr Parnell said.




For further comment contact Craig Wilkins on 0434 007 893