Carbon tax to cost coal-fired generators $4.6 billion

The carbon tax is expected to cost coal fired generators  4 6 billion over the next year 16000646 800481611 0 0 771 300

The introduction of the carbon tax on July 1 will impact Australia’s coal-fired generators by up to $4.6 billion over the next year, according to the Energy Supply Association of Australia (ESAA).

That bill is expected to increase even further in the 2013-14 period, with coal generators having to pay even more for carbon permits.

"The scale of carbon price liability, coupled with soft wholesale electricity prices, uncertainty over future demand and continued regulatory uncertainty, are all contributing to mounting financial stress and uncertainty in the investment outlook for the sector," said ESAA chief executive Matthew Warren yesterday (June 27).

"Uncertainty creates risk, and risk increases costs."

Earlier this month (June 13), Mr Warren commented on the rising utility costs that had been brought on by the carbon tax.

He noted that the increase of 18 per cent in electricity prices in NSW would be hard on families, but recommended that residents talk to their current electricity supplier about working together to reduce energy bills, as well as shopping around to ensure they were getting the best deal.

The ESAA represents 38 major businesses involved in the energy industry across the country and lists its objectives as ensuring Australia enjoys the full benefits of energy market reform.

Posted by Charlie Moore