Submission to the Climate Committee

Dear members of the MPCCC,

It is important that the funds collected from an increase in the price of energy be invested in ways to reduce the level of greenhouse gases. It is important that those who cannot afford to pay the increase be compensated in some way. An energy discount scheme achieves both objectives.

In the same way that the price per litre of water increases the more a household consumes so the price per kwh of mains energy could increase. That is, a price on carbon is put on energy to high consumers of mains electricity generated from fossil fuel. The money collected from the increase can be given to those people living in households where the kwh per person is low as discount coupons on energy. The discount coupons must be invested in approved ways to reduce greenhouse gas levels. The key point is invest not spend. For example the discount coupons must be used to build new renewable energy plants not purchase renewable energy.

Almost all renewable energy projects and energy saving investments will return more money than is invested. The people receiving the discounts will tend to invest in those that are the most profitable or economically efficient. People who do not wish to invest directly can sell their coupons to those who are willing to invest.

With modern technology a system to administer this scheme would cost less than 1% of the funds invested. While the committee is deliberating it could be trialled immediately on a small scale in a single suburb or in a sizeable country town.