Antinuclear

Tony Abbott’s claims about scrapping carbon tax – need scrutiny

Fact check: will scrapping the carbon price lower electricity prices? Fact check: will scrapping the carbon price lower electricity prices? The Conversation,  Dylan McConnell, 18 May 13, Tony Abbott has said he will scrap the carbon “tax”, leading to a fall in electricity prices.

In his budget reply speech he stated: We will abolish the carbon tax – because that’s the quickest way to reduce power prices and take the pressure off cost of living and job security.

But will removing the carbon price really lower electricity prices, and if so, by how much?…….

wholesale costs only account for around 37% of retail electricity prices. Other major components of retail prices are transmission costs,
distribution costs (“poles and wires”), and retail costs (which include costs like the Renewable Energy Target).

Over the same period transmission costs went up 27%, distribution by 11% and retail costs by 17%. These components are independent of the carbon price, and account for the majority of hikes in retail electricity prices.

It’s worth remembering too that even without the carbon price, electricity prices are predicted to rise. Climate Change Authority
research suggests that without the carbon price, the rise would with be slightly smaller, with retail electricity prices just 6% lower. .http://theconversation.com/fact-check-will-scrapping-the-carbon-price-lower-electricity-prices-14408

May 18, 2013 - Posted by Christina Macpherson | election 2013