Energy target review questions mount

An inquiry has been told a firm hired to advise the review of the renewable energy target offers value for money, despite not being the cheapest on offer.

The Abbott government review of the renewable energy target has come under further scrutiny, with questions being asked about a consultancy firm hired to advise the panel.

An inquiry has been told ACIL Allen won the sole government contract to advise the RET review despite cheaper proposals from competing firms.

The government has asked the review to consider the appropriateness of the bipartisan clean energy scheme and its impact on power prices.

The RET mandates that 20 per cent of all electricity come from renewable sources by 2020, but critics have called for this to be watered down or scrapped.

A top public servant involved with the review admitted ACIL Allen's pitch wasn't the cheapest but said it did represent the best value for money out of the nine firms that tendered.

"They were found to have submitted the best proposal in response to the request of the electricity market work," first assistant secretary Brad Archer told a Senate estimates hearing on Tuesday.

"It's not exclusively about price."

But ACIL Allen's extensive modelling work for the traditional energy market has led some renewable power supporters to ask questions.

Greens senator Scott Ludlam asked how "analysts for the coal industry" could be expected to deliver fair advice.

"Does it worry you that they might tilt or kink their models in favour of black power generators?" he asked.

The inquiry also heard that stakeholders weren't happy with the review's decision not to consider any scenarios with a carbon price or emissions reduction policy until 2030.

Mr Archer said the panel was actively considering including such modelling in its review process.

It's not the first time the review process has come under scrutiny.

The government was heavily criticised over its decision to appoint Dick Warburton - a former head of Manufacturing Australia and sceptic of man-made climate change - to head the panel.


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Source: AAP


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