ESAA denies high-emitting power stations are profiting from carbon tax
The Energy Supply Association of Australia (ESAA) has hit back at claims Australia’s brown coal power stations will profit from the federal government's carbon tax legislation.
"The combination punch of a carbon price, soft wholesale electricity prices, weak demand forecasts and deepening market uncertainty are clearly hurting the bottom line of Australia’s coal fired power stations," said ESAA chief executive officer Matthew Warren in a statement released yesterday (September 6).
The comments came in response to a report released last week by Frontier Economics which argued that the highest-emitting brown coal electricity generators in Australia were actually hundreds of millions of dollars better off under the carbon tax.
However the ESAA - an association of leading energy supply businesses based in Australia and New Zealand - has firmly denied this and labelled the report "back-of-the-envelope arithmetic".
"For Frontier’s Danny Price to say on ABC Radio this morning that generators are ‘jumping for joy’ is just astounding," said Mr Warren.
Mr Warren asserted that coal generators in Australia were facing challenges, and argued that the carbon price was hurting the industry rather than assisting it as was claimed in the Frontier Economics report.
Posted by Charlie Moore