A NSW Auditor General’s Report has found that the NSW Government and its agencies grossly underestimated the cost and number of people that would install systems under the Solar Bonus Scheme.

By October 2010, the estimated cost of the Scheme, if it continued the way it was going, would have reached $3.988 billion. More than ten times the original estimate of $362 million. In response to the increased cost, the gross tariff for new applicants was reduced from 60 to 20 cents reducing the estimated cost to $1.954 billion.

It was a statutory requirement that when 50 mega watts of installed capacity was reached, the Government would review the Scheme. By the time the review was completed the installed capacity had reached 101 mega watts.

There have been tangible improvements in the time it takes NSW Government agencies to engage consultants through the Government’s Prequalification Scheme. The Scheme was introduced in February 2008 to improve agencies’ procurement of consultants. More than 300 service providers have been prequalified and over $300 million worth of consultancy services have been provided. Ideally agencies should know what assignments each consultant has won, for what services, what their rates are and how well they have performed. Agencies should then be free to contact other agencies before engaging a consultant.

Parliamentary reference - Report number #216 - released 28 September 2011

The Audit Office is of the opinion that the basis for environmental impact assessment of major projects in NSW is sound. The key concept of 'environmental significance' is well defined. The system is closely specified. The Department of Urban Affairs and Planning (DUAP) leads a whole-of-government approach to environmental impact assessment and its assessments are comprehensive. However, the Audit Office considers that there are opportunities for improvement by more actively managing the participants and the performance of the environmental impact assessment system. DUAP needs to strengthen its internal documentation and must ensure the public have greater involvement.

Parliamentary reference - Report number #92 - released 28 November 2001

The regulatory framework introduced under the Protection of the Environment Operations Act 1997, along with other initiatives progressively being implemented by the Environment Protection Authority (EPA), should enhance the overall effectiveness of environment protection in NSW. The Audit Office is of the opinion that the framework is consistent with best practice and once fully implemented, should contribute to the achievement of further improvements in the environmental performance of industry.

However while the legislative framework supports best practice in regulation and enforcement, there are a number of issues which limit the effectiveness of the reforms. Some of the problems, such as the quality of licences and the effectiveness of compliance activities, have been identified by the EPA and may be addressed through recent initiatives.

Parliamentary reference - Report number #82 - released 18 April 2001