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Claims repealing carbon tax won't have immediate effect

It's been claimed that should the carbon tax be repealed, consumers won't see electricity prices immediately fall.

The Coalition and Tony Abbott have committed to scrap the tax should they win office next year.

Energy Retailers Association of Australia's chief Cameron O'Reilly told the Australian Associated Press (AAP) that prices won't fall because changes to legislation and reviews to policy would need to take place before energy providers could re-examine their pricing system.

In addition to this, Mr O'Reilly said that because retailers pass on the carbon tax component differently because of the alternate sources of energy - whether coal, hydro, wind or gas.

The chief mentioned: "Also there are a number of assumptions about how this is passed on to the consumer."

He did concede that green schemes played a part in electricity rises.

The opposition spokesperson for climate action, Greg Hunt, refuted this.

He commented to the AAP: "We expect, on the basis of what the regulators have said, that the bills would fall by the full amount of the carbon tax charge."

If you are unhappy with your energy provider, talk to a comparison and switching service and find out if there is a better deal out there for you.

Posted by Charlie Moore