Carbon tax impact on electricity prices

The impact of the carbon tax on electricity prices will be monitored 16000646 800476795 0 0 7648 300

On July 1 Australians will begin paying a carbon tax as part of their household, commercial and industrial energy bills.

While there will be an increase in electricity prices because of this, the exact impact of the tax will be difficult to calculate, according to the Australian Competition and Consumer Commission (ACCC).

The commission will be keeping an eye on the effects of the tax and monitoring what electricity suppliers are telling their customers.

The New South Wales and Queensland governments plan to ask electricity companies to include a mention of the impact of the tax on bills sent to customers, but ACCC chairman Rod Sims says this will not be achievable in an exact sense.

"If you mean down to the last cent, then because you don't actually know precisely where the electricity is coming from, it's not possible," he said yesterday (March 26).

Mr Sims suggested that a ten per cent increase would be a reasonable amount based on current $200-per-megawatt-hour prices. If a supplier comes up with a number which seems overly large, ACCC representatives will be questioning their calculations, he added.

Posted by Charlie Moore