Following the commencement of the Victorian Transitional Feed-in Tariff in early January, Victorian Treasurer Kim Wells has directed the Victorian Competition and Efficiency Commission to conduct an inquiry into the Feed-in Tariff, as well as Arrangements and Barriers to Distributed Generation.
The commission is to consult with key interest groups and affected parties, including representatives of end-use electricity consumers.
Treasurer Kim Wells said: “This inquiry will assist the Coalition Government in developing fair and cost-effective arrangements for the future, which is particularly important ahead of the implementation of a national carbon price.”
The terms of reference for the inquiry require the Victorian Competition and Efficiency Commission to:
- Consider how efficient and effective feed-in tariffs are as a greenhouse gas reduction program
- Provide a recommendation as to whether feed-in tariffs should be continued, changed or phased out
- Identify barriers to a network of distributed renewable and low emission generation in Victoria, including co-generation and tri-generation.
From 1 January 2012, eligible Victorian customers with small-scale solar PV systems have received credits for their excess energy fed back into the grid through the Victorian Transitional Feed-in Tariff.
The Victorian Transitional Feed-in Tariff, which replaced the closed Premium Feed-in Tariff, offers eligible properties with a solar PV system of 5 kW or less a credit of at least 25 cents per kilowatt hour for excess electricity fed back into the grid.