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Government Agrees Short Term Carbon Price

The Australian federal government has agreed to a policy to set an interim carbon price, which will be implemented to help reduce overall carbon emissions over the next two years.

The policy is likely to be seen as a short term compromise position before the government and opposition lock horns again over a wider reaching climate policy and potential emissions trading scheme, effectively taxing the use of 'dirty' electricity.

Tim Wolfenden, CEO of MakeItCheaper.com.au comments: "This appears to be the case of slow and simple.  The journey towards using more renewable and environmentally friendly electricity methods was always going to be fraught one.

The concern short term is obviously going to be, what will these measures mean in terms of electricity price increases?

We heard earlier this year that consumer could expect electricity price rises of 60% over the coming years, due to the introduction of the emissions trading scheme.  This was then revised down, when the emissions trading scheme was put 'on ice'.

Now it seems that some sort of additional costs on a customers electricity bill may be back on the table.  The devil is going to be in the detail."

For a business or home owner, there's never been a better time to shop around, and find a cheaper energy deal.

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