State government consultation on amending the Payment in Lieu of Rates (PILOR) Scheme for energy storage systems has received firm objection from Moorabool council.
The Department of Energy, Environment and Climate Action (DEECA) is seeking feedback from local government, companies and other stakeholders as it considers potential amendments to the PILOR Scheme to clarify the treatment of energy storage systems and introduce a fee-setting methodology specific to these as distinct from electricity generators.
The PILOR framework allows electricity generators to negotiate annual payments to local councils instead of property rates.
According to Moorabool, the proposal to differentiate energy storage systems from other forms of electricity generation under the scheme considers their smaller land footprint and capital intensity.
At the July 2 council meeting, councillors voted to approve a draft submission to DEECA and Energy and Resources Minister Lily D’Ambrosio opposing content in a discussion paper about the potential amendments.
In its draft submission, the council’s objections included that the PILOR framework already financially disadvantages councils financially, with local wind farms currently contributing 38 per cent of the revenue they would under CIV-based rating; that the the proposed methodology could further erode council’s revenue base without offsetting benefits to local communities; and that the new model would introduce additional complexity and diverge from the consistent CIV-based approach used in other state taxes.
Mayor Paul Tatchell said the proposal was “pretty ordinary.”
“When these batteries … are put in, they’ve obviously charged … the cheapest methodology for rating them, and we’re saying … that’s just outrageous really,“ Cr Tatchell said.
“In consideration that the whole shire’s been littered with renewable energy infrastructure that’s probably designed more for Melbourne than us – none of it comes here …there’s already a massive cost shift,” he said.
“I [believe] the government needs to have a good hard look at itself and understand what they’re doing to peri-urban regions with this renewable program.”
A state government spokesperson said “We welcome feedback from councils, including Moorabool Shire Council, as part of this process.”
“We’re maintaining the PILOR framework as part of a balanced approach that supports valuable investment in electricity generation while ensuring host communities and local councils see benefits too.“
