A report by a consulting firm has recommended Australia should take more action to curb its overheating economy.
Key points:The report recommends Australia should look at policies that could help it boost its energy efficiencyThe report said Australia’s energy efficiency was still at an unacceptable level, with more than 40 per cent of households still paying more for electricity than they can affordThe report, released on Thursday, comes after a report earlier this month found Australia’s economy was more fragile than previously thought.
The report was authored by energy consultant IHS Global Insight and was commissioned by the Australian Energy Market Operator (AEMO) to examine the impact of Australia’s current energy policies on the economy.
The findings were published by the Government’s Office of the Premier, which is overseeing the Government-appointed Independent Review of Australia.
“While energy efficiency is still at a unacceptable level and households continue to pay more for energy than they need, there is now a real opportunity for Australia to tackle the issue of energy poverty,” the report’s authors wrote.
“In addition, the report suggests that Australia could consider adopting a range of measures to promote and support economic recovery in this increasingly overheated economy.”
The report’s conclusions echo those of a separate report released in June that found Australia was still facing “the largest economic challenge to our national recovery” with Australia facing “record low” GDP growth, and an unemployment rate of 9.1 per cent.
“Australia’s economy is already experiencing a slowdown of the magnitude experienced in the early 2000s and we are still struggling to recover from the 2008-09 global financial crisis,” the Government of Australia said in a statement.
“It is essential that we ensure we are delivering a sustainable recovery and the future of our economy for years to come.”
The Government’s policy approach has been to prioritise low carbon energy development and energy efficiency initiatives.
“The study also found that the Government had no plan to increase energy efficiency, as it was too costly.”
We know that building an efficient system is much more expensive than building a system that is more efficient, but we also know that our economy depends on the energy that is generated and we have a responsibility to ensure that we are ensuring that the energy generated is as efficient as possible,” the authors wrote in the report.”
As Australia continues to experience a rapid growth in energy use, there are currently no plans to introduce any changes to our energy efficiency laws to make them more affordable.