By Peter Hannam
Improvements in Australia's energy productivity are running at less than half the federal government's target, leaving power bills and greenhouse gas emissions unnecessarily high, analysts say.
The Australian Energy Update 2018, released without fanfare by the Morrison government last week, shows energy productivity - a gauge of extra economic output per unit of energy - rose 0.9 per cent in the 2016-17 year.
While an improvement on the previous year's 0.1 per cent decline, both years' tallies fell well shy of the average gain of 1.7 per cent over the past decade.
They were even further from the 2.3 per cent annual improvement needed if the National Energy Productivity Plan - launched by the Turnbull government in December 2015 - to improve efficiency 40 per cent by 2030 from 2015 levels is to be achieved.
"Comparable countries are improving their energy productivity at well over 2 per cent per year," Jonathan Jutsen, chairman of the Australian Alliance for Energy Productivity, said.
"When you combine low energy productivity and rapid price increases of gas and electricity that means plummeting energy competitiveness [and] our one significant historical competitive advantage has evaporated."
Mr Jutsen is among those waiting to hear if the Morrison government and new Energy Minister Angus Taylor have any plans to boost the minimal federal spending on energy efficiency despite the potential for lowering costs and greenhouse gases.
"States like NSW, Victoria and the ACT are largely doing their bit," he said.
In its review of climate policies released late last year, the government noted minimum energy performance standards for fridges and other appliances had saved average households as much as $190 a year.
Greenhouse gas emissions are also reduced with lower energy wastage, a plus when the government has few other policies to lower pollution particularly after it scrapped its National Energy Guarantee.
"My number one priority is to lower power prices while keeping the lights on," Mr Taylor said, adding that the government remains committed to the NEPP goals.
"Energy efficiency is just one important part of achieving [lower prices]," he said. "We are supporting business investment in improved efficiency and helping households to reduce home energy costs.
"We will continue to take a consultative approach and engaging with business and industry, consumer, health and environment groups to support energy productivity improvements," Mr Taylor said.
'Wrong end'
Alan Pears, a senior industry fellow at RMIT University, said Prime Minister Scott Morrison had dubbed Mr Taylor the "minister for lowering power prices". Mr Taylor, though, should be focused on what consumers and businesses paid for their energy.
"It's actually the energy bills that matter to people," Mr Pears said.
"All the international comparisons show we are going backwards," he said. "We are leading at the wrong end."
Among 28 nations examined by the International Energy Agency over 2000-16, Australia ranked fifth worst performer on energy efficiency improvements - and even worse if the 2008-16 period is assessed.
Mr Pears noted the absence of new fuel efficiency standards for cars that had been promised. Also, the release of a draft report into appliance energy efficiency - expected to be released at the end of August - had apparently got caught up in the political turmoil surrounding the ouster of Prime Minister Malcolm Turnbull.
'Policy paralysis'
Mark Butler, Labor's climate and energy spokesman, said the Liberal-Nationals coalition had "no plan to improve energy efficiency and productivity, just like they have no plan to support investment or lower prices".
"Under the Liberals' energy policy paralysis, power bills will continue to soar for Australian households and businesses," he said.
If elected to office, Labor's so-called Australian Investment Guarantee would allow all businesses to immediately deduct 20 per cent of investment in eligible depreciable assets over $20,000, including assets that lower energy use and improve energy efficiency, he said.
Electricity prices don't necessarily equate to higher power bills if appliances are more efficient.Credit: Michael Clayton-Jones