A carbon price could add $300 per household

Published: May 26, 2011 - 01:00 PM

Uncertainty around the Government's carbon tax has seen investment in power stations stall

TRU Energy has sparked further controversy in the carbon price debate by suggesting that the introduction of the new tax could see electricity prices double in 6 years.

Managing Director, Richard McIndoe, told ABC TV that rising fuel and gas prices will see electricity and gas prices rise by 30% over the next three years. “A carbon price will add another $300 per household on top of that, so for a six-year period you're seeing an effective doubling of electricity prices per household with no tangible benefit," Mr McIndoe said.

Mr McIndoe said that uncertainty around the carbon tax has seen investment in new power stations stall. The Electricity regulator Australian Energy Market Operator (AEMO) had forecast power grid shortages in Queensland in 2013 and 2014, and Victoria and NSW in 2015 and 2016.

Mr McIndoe stated that until the uncertainty around the carbon tax is addressed, electricity companies will not invest infrastructure to address the forecasted shortages.

Paul Murray of www.shoparound.com.au stated that “Further forecasted rises in electricity and gas prices will hurt consumers and householders. With prices already having increased by about 40% over the past three years, and still expected to rise, the carbon tax will place further unwanted pressure on household budgets.”

Mr Murray said that consumers should take the opportunity to compare cheap electricity and find cheaper gas prices wherever possible. Cheap electricity in Victoria has been available after market deregulation for some time. Households have already taken advantage of cheaper electricity and cheaper gas in South Australia. NSW and Queensland with their more recent deregulation are seeing a more active electricity and gas market leading to cheaper electricity and gas available in NSW and cheaper electricity and gas rates in Queensland.

Whether you live in Queensland, NSW or Victoria or South Australia, you can use shoparound.com.au to find cheaper electricity in Sydney, Melbourne, Brisbane, Adelaide, Ballarat, Wagga Wagga, Bega, Newcastle, Wollongong, Bundaberg and everywhere in between.

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