Queensland Premier Campbell Newman cans PM's energy rating system for new residential units

Campbell Newman has pulled out of a tougher 6-star national energy rating for new residential units to slash an average $1200 from the cost of building an apartment.

The Premier has also scrapped a deal with the Federal Government for mandatory reporting of energy efficiency standards of new buildings in a move he describes as cutting red tape.

But the Federal Government has accused him of making it harder for people to cut their energy bills.

The deals were agreed between Anna Bligh and Julia Gillard as part of a national program of energy efficiency rules.

Mr Newman's decision to pull out is a blow to Ms Gillard's plans to streamline rules through the Council of Australian Governments.

The new 6-star rating would require better minimum levels of insulation and glazing in new apartment buildings to cut energy use for heating and cooling.

But the Premier warned the new rating would drive up the cost of new buildings without getting much return in lower power costs.

The tougher standards are estimated by Queensland to add an average $1200 per unit to construction costs but are only expected to reduce electricity costs by about $54 a year.

In a letter to the Prime Minister, Mr Newman said the higher 6-star rating was unnecessary in Queensland and suggested it was designed for the climate in other states.

"The Queensland Government cannot justify the cost of transitioning from 5-star to 6-star requirements, especially given that Queensland's climate makes our 5-star units generally more energy efficient than 6-star units in other states," Mr Newman said in the letter.

The Premier also hit out at plans for mandatory disclosure of energy, greenhouse gas and water performance in new units at the point of sale.

He said the scheme would breach his own election commitment to cut red tape and was "unlikely to increase consumer uptake of sustainability features in homes".

Federal Parliamentary Secretary for Climate Change Mark Dreyfus attacked the move.

"Energy efficiency means cheaper electricity bills," Mr Dreyfus said.

But the Premier was backed by the building and property industry.

Master Builders' director, housing Paul Bidwell said the Federal Government "had not proved the benefits outweigh the costs" of the 6-star system.

By Steven Scott