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Government in heated exchange over power prices

Conflicting reports of carbon tax impact released 16000646 800469710 0 0 7005928 300

Prime minister Julia Gillard has accused the Coalition of being determined to eradicate clean energy jobs and see to it that electricity prices continue to climb.

The back and forth continues as the government gets closer to passing all of its Clean Energy Future legislation, which will see large-scale changes to the nation's electricity infrastructure.

Comments reported in the Sydney Morning Herald today (October 19) come as independent analysis of the impact of the carbon tax on families is released.

Forecasts from the National Centre for Social and Economic Modelling (NCSEM) have deduced that households will be marginally better off following the implementation of new legislation.

The combination of living cost increases alongside tax cuts and higher pensions will mean that households will be an average of $2.40 better off.

Figures from NCSEM are higher than the government's official estimates, which believe that households will only see an extra 20 cents in their budget.

These also show that 15 per cent of Australians could be worse off by up to ten dollars per week.

Households won't know for sure until the system comes into effect next week, however in the meantime they may wish to switch electricity suppliers should they be able to find a cheaper rate.

Posted by Charlie Moore