Government Establishes Electricity Safety Net in Response to Unsworth Committee

Thursday, 10 April 2008 00:00

Australia — Premier Morris Iemma today announced a series of new consumer protection measures including a $272 million Electricity Safety Net package that will strengthen the Government's plans to secure NSW energy supplies.

Mr Iemma announced the initiatives in response to the Unsworth Consultative Reference Committee report.

"Today we are announcing initiatives that will help the environment, families and workers," Mr Iemma said.

"Our package includes increased utilities rebates for pensioners, carers and recipients of other allowances and stronger protections for workers and the environment."

The Iemma Government will provide:

  • $65 million over five years to increase pensioner energy rebates from $112 to $130 per annum, indexed to CPI;
  • $27.5 million over five years to extend energy rebates to include recipients of Carers Allowances (child under 16), Sickness Allowances and Special Benefits;
  • $125 million over five years to support the introduction of a "no disconnections policy" for small domestic customers in NSW;
  • $55 million over five years to increase the level of funding under the current Energy Accounts Payment Assistance Scheme to $100 million; and
  • Enhanced protections for employees in the retail and generation sector by requiring Government commitments on employee protections to be included in private sector bidders' plans.

The total cost of the Electricity Safety Net package is $272 million over five years.

In addition to higher pensioner rebates the Iemma Government will provide funding support for a "no disconnections policy" and other assistance for families facing severe financial hardship.

These enhanced consumer protection measures will be delivered once the Government's energy plans are substantially delivered.

"By accepting the overwhelming majority of the recommendations of the Unsworth Consultative Reference Committee we are delivering additional certainty, security and protection to families, employees and the environment," Mr Iemma said.

The Committee was established to provide an opportunity for representatives from unions, consumer and community groups to consider the Government's plans for the electricity industry.

The Government will establish a range of employee protections as prime criteria in assessing proposals from potential new operators of NSW power stations including:

  • The level of protection and certainty offered to employees and the mechanisms offered to enshrine in contracts and industrial instruments the undertakings made to staff by both Government and new operators;
  • Commitments to implement the NSW Government's policy regarding the protection and retention of superannuation entitlements including current contributions to accumulation funds above the 9 per cent entitlement;


 
 

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