Ai Group applauds removal of EREP
Australian Industry (Ai) Group Victorian director Tim Piper has applauded the state government's decision to close down its Environment and Resource Efficiency Plans (EREP).
Mr Piper said that businesses will benefit from the decision made by the Baillieu administration.
The Victorian director explained that the EREP was introduced in 2008 to ensure electricity suppliers and gas suppliers, as well as large water users, focused on efficiency.
They were required to report on opportunities for increased efficiency and implement them.
He said: "However, when the program was introduced, industrial electricity prices were 40 per cent lower than today and business did not face a carbon price or a stubbornly high Australian dollar.
"It may have served a purpose five years ago but in today's economic climate it no longer provides incentive, only additional regulatory burden."
The Ai Group's 2012 Energy Shock report found that the majority of businesses are looking to increase energy efficiency, Mr Piper added, as pricing costs were creating an impetus to reduce wastage.
Energy Shock's findings were that three-quarters of all businesses have taken action to improve efficiency, up from 33 per cent in 2010.
By scrapping the EREP, Mr Piper concluded that managers can focus on their core business goals.