According to the Australian Financial Review, the Queensland, Victoria and Australian Capital Territory leaders have stated that they will not sign off on the National Energy Guarantee (NEG) at this Fridays COAG Energy Council Meeting. They have provided their support in principle however are waiting until after the NEG has been through the Coalitions party room on Tuesday next week before providing agreement. Premier Palaszczuk claimed that as of yesterday, the states had not seen the legislation that they would be asked to support on Friday. Tuesday next week has been indicated as the earliest that a decision will be made by the Labor state and territory leaders.
Another debate is also underway in regards to the emissions reduction target to be set by regulation or legislation. If set by regulation a minister would be able to change the target without the approval of parliament. If set by legislation, any changes would have to be passed by both the lower and the upper house providing additional investment security. The Labor states are pushing for regulation so the targets can be changed as soon as possible. The Commonwealth Government wants the target to be legislated as was done by the previous Labor Government when agreeing the Renewable Energy Target.
If you would like to understand more about the NEG and the potential impact it may have on your energy portfolio moving forward, please visit edgeenergyservices.com.au or alternatively you can call one of our team directly on 07 3905 9220 or on 1800 EDGE ENERGY.