News & Events

Biggest energy users battle to hit targets
Fleur Anderson - Australian Financial Review

21 March 2011

Almost two-thirds of Australia’s biggest energy users risk failing the federal government’s energy efficiency reporting rules – as well as random emissions audits – before the introduction of a carbon price next year.

More than 220 corporations, including about 1200 subsidiaries, have to report each year to the Department of Resources, Energy and Tourism’s Energy Efficiency Opportunities program on how they plan to reduce their energy bills.

Eighty large corporations – which each use the same amount of energy as more than 10,000 households and have annual bills up to $4 million for gas, $11 million for electricity or $21 million for diesel – have had “desktop audits”.

Almost two-thirds of Australia’s biggest energy users risk failing the federal government’s energy efficiency reporting rules – as well as random emissions audits – before the introduction of a carbon price next year.

The department found 15 corporations had a “high risk” of noncompliance with commonwealth energy efficiency laws and 33 had a “medium risk”. It will audit another 20 in the next two months.

A large and growing compliance burden as both commonwealth and states impose separate climate change policies has exacerbated business’s lacklustre track record in meeting the reporting regimes.

Up to six separate reporting schemes regulate large businesses. These include the commonwealth’s national greenhouse and energy reporting scheme, the energy efficiency opportunities scheme and the national pollution index; the NSW government’s national built environment rating system and its energy saving action plan, and the Victorian government’s environment and resource efficiency plans.

CarbonSystems helps several corporations – including Ramsay Health Care, Bega Cheese, Visy and Elders – to track their energy, carbon and environmental performance to meet the reporting regimes.

CarbonSystems spokesman Dan Gaffney said corporations had to be able to prove their gas emissions and energy use, and state how they would improve energy efficiency.

“It’s like looking at kids’ homework – they have to show the workings and I’m guessing there’s been some pretty shoddy work,” he said.

Ramsay Health Care targeted air-conditioning, water and staff in its latest report to the Energy Efficiency Opportunities program.

The electricity generators will also have to report their efforts to be more energy efficient by July this year under Labor’s election vow to ban dirty coal-fired power stations.

The Australian Financial Review revealed last week that the federal government would do random audits to verify businesses’ greenhouse gas emissions before it introduces a carbon price next year.