It is expected the government will use the findings of the review to make sweeping changes to the RET scheme.

The Renewable Energy Certificate Agents Association has come out in defence of the Small-scale Renewable Energy Scheme, which makes up part of the RET scheme.

It says the cost of the SRES, which helps families install solar panels and solar hot water systems, is expected to have over the next two years to less than 1% of a power bill.

The association says the reduction in wholesale electricity prices delivered by the SRES cancels out any related cost increase that gets passed through to customers.

“This analysis destroys the myth that the Renewable Energy Target is a major driver of soaring power bills,” RAA president Ric Brazzale said.

“The RET is low-cost and high achieving. It must be maintained to finish its job.”

The RAA analysis uses Australian Energy Market Commission data to show the make-up of power bills and the contribution of the two parts of the RET – the SRES and the Large-scale Renewable Energy Target.

Key findings of the RAA analysis are:

• the cost of the RET that gets passed through to residential customers amounts to 1.12 cents per kilowatt hour, or 4% of the average household electricity bill
• the cost of the SRES accounts for 0.54c/kWh or 2% of a customer’s bill and is expected to more than halve over the next two years to account for less than 1%
• the RET puts downward pressure on wholesale electricity prices and as a result, wholesale prices are considerably lower than expected. The reduction in the wholesale price due to the RET is estimated to be 0.67c/kWh
• in the case of the SRES, the reduction in the wholesale price cancels out the future cost increase that gets passed through to customers.

“RAA’s analysis shows regulated transmission and distribution cost has been the biggest driver of rising power prices to date and is expected to be the major contributor to rising power prices in the future,” Brazzale said.