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Carbon Tax passed, paves way for electricity prices increase

Carbon tax legislation has been passed 16000646 800469431 0 0 7065097 300

Everyday Australians can expect further rises in electricity prices following the lower house's decision to pass the Gillard government's carbon tax legislation.

Whilst parliament has pledged to provide assistance to cover rising expenses in a number of areas, many consumers are still concerned about their ability to deal with further expenditure jumps.

A report from Energy Matters has broken down the expected increases in different states - including the Queensland opposition's prediction that electricity prices will rise by 22 per cent and a 23 per cent increase for Tasmanians by 2014.

As the carbon tax legislation impacts on the operations of energy generators and distributors, it is inevitable that some portion of redevelopment cost is passed down to households.

The expense that is incurred during network upgrades and transition to more eco-friendly practices is often offset by suppliers through rate increases.

Further tax cuts will be made available to households in order to compensate for the increase - however the effectiveness of these is not 100 per cent guaranteed, given that forecast price increases may be subject to change once the program actually begins.

In addition to adopting more energy-conscious behaviour in the home, households always have the option to switch their energy supplier if they find a cheaper alternative.

Posted by Charlie Moore