Our submission argues that the expansion of the scheme to SMEs and a doubling of the scheme target is the least that is required to harness the potential of this scheme to cut household and business energy costs, and cost-effectively reduce greenhouse gas emissions. There is significant energy saving potential in the SME sector, and an expanded scheme would address the gap in policy support for this sector.
Energy efficiency is one of the best ways to achieve low cost and lasting reductions in household and business energy bills, and the ESI scheme has already cost-effectively reduced Victoria’s emissions and cut energy costs for consumers. According to the cost-benefit analysis, an expanded scheme would deliver over $2.6 billion in benefits to the economy.
The cost-benefit analysis only modelled three options, with the highest target being double the existing target. Our submission suggests that the Government do further work to assess the impact of a higher target. A higher target could deliver additional cost-effective savings and emissions cuts. In the context of public concern about rising electricity prices, Victoria’s 20% emission reduction target, and the impending introduction of a carbon price, this is an opportunity that should not be overlooked.
