The Australian Aluminium Council urges full exemption from the RET

The Australian Aluminium Council has published a statement on the report by the Expert Panel for the Renewable Energy Target (RET) scheme and its impact & benefits on the renewable energy sector, the manufacturing sector and Australian households.

“We welcome the acknowledgement by the Review Panel that the RET impacts electricity prices for trade exposed businesses such as aluminium smelting and alumina refining – and that significant adjustments to the scheme are required to reduce its cost burden,” Miles Prosser, the Council’s Executive Director said.

However, the Australian Aluminium Council says that the RET policy imposes extra costs on smelters which other major global competitors of the Australian aluminium industry do not need to pay. This is restricting their ability to compete internationally in the present commercial environment.

According to a report, the present RET scheme costs about $70 million per annum to the Australian aluminium industry. Since its commencement in 2001, it has put an extra cost of more than $500 million. If the industry is not relived from this cost, the Australian smelters might face further costs of $300-500 million in coming 5 years.

“Much has changed since the introduction and subsequent expansion of the RET, including much tougher conditions for Australian manufacturing and a reduced demand for electricity. It is entirely proper for the Government to review and adjust the RET in light of these changes,” Mr Prosser said.

The Aluminium Council urges all parties to support the aluminium industry in getting relief from the cost of RET considering and the employment and investment opportunity it creates for Australia.