Aluminium RET exemption threatens others: AiG

The Australian Industry Group is pushing back on the aluminium sector's call for a full exemption from the Renewable Energy Target, arguing it could lift power costs for other large electricity users, Carbon and Environment Daily reports.

According to the website, the alumininum sector already claims two-thirds of all partial RET exemptions for large electricity users, designed for trade-exposed industries, but the aluminium sector says the scheme is still driving up power costs by $80 million a year, adding $40 to the cost of a tonne of aluminium which is currently selling for $1700.

Australian Aluminium Council executive director Miles Prosser told CE Daily the government could do more than adjust exemptions to help others' with power prices: "It can adjust the target, it can adjust Small-Scale Renewable Energy Scheme multipliers, it can adjust how long the targets go for, a whole range of things."

But AiG chief Innes Willox said extending exemptions would "come at a price" for unexempted energy users, which were hit an estimated extra $1.02 per MWh due to the exemption program in 2011, while lowering the target would also reduce the benefit that RET-generated extra capacity was having on wholesale electricity prices, the website reported.

"In short, the RET debate is complex and Ai Group wants to see very clear analysis in the current review of the costs and benefits, particularly to energy users, of both the status quo and any reforms proposed," Willox said, according to the report.