Wonderful thing, this carbon dioxide derivatives
Even more wonder full … the Treasury department’s modelling of it.
Bend over and grab your ankles Australia. Here comes your Clean Energy Future power bill.
From the Australian:
The carbon tax will push up electricity prices by about double the 10 per cent nominated in Treasury modelling for some of the nation’s biggest industrial power users.
The biggest electricity users will face power price rises of about 20 per cent, sparking warnings that it will severely damage elements of the nation’s manufacturing sector…
National Generators Forum chairman Trevor St Baker said industrial power users would face higher proportionate electricity price rises compared with residential power users. This is because many big power users have contracts at lower rates than those paid by residential users.
Some of the biggest power users pay about 10c a kilowatt hour, while many others pay from 12c to 17c/kWh. Residential customers pay about 21c/kWh.
Treasury argues that power companies will pass through about 85 per cent of the carbon price, equating to a price rise of 1.95c/kWh for all users.
Oh, well that’s alright then. Just don’t mention that the Australian Energy Market Commission has reported that residential power users can expect a 37% increase in their bills (more below).
This would equate to a 19.5 per cent electricity rise for a big user with a contract price of 10c/kWh and about 13 per cent for a user with a contract of about 15c/kWh.
“The reality is that the little Victorian factories and factories all over the country are going to be affected,” Mr St Baker said. “There needs to be a circuit breaker. These are people who are employing people in the most marginal import-competing jobs. And they are all going to go overseas.”
Queensland Nationals senator Ron Boswell said the carbon tax would impose another cost on manufacturers on top of the high dollar. He said many businesses would be caught unawares by the increase in electricity prices when the carbon price takes effect from July 1 next year.
“The cost is bigger when you add the cost of renewable energy,” Senator Boswell said. “Renewable energy could take the increased costs up to 30 per cent.”
There goes the (manufacturing) neighbourhood.
Meanwhile, now that the carbon “tax” legislation has been rammed home by Green-Labor and the “Independents”, the lamestream media has gone all quiet on the true consequences.
As Keith Orchison at Business Spectator notes (emphasis added):
Given the supposedly “white hot” community views on electricity prices – which we were assured back in March was the voter mindset as NSW went to the polls and which we may see play a role in the upcoming Queensland election – there was surprisingly little mainstream media follow-through in December on an important report delivered to the Council of Australian Governments’ energy ministers committee.
The critical point in the report prepared by the AEMC [Australian Energy Market Commission] is that we can expect a rise of 37 per cent in power bills across the country between 2010-11 and 2013-14. In other words, a householder paying $1,500 a year for electricity today can expect to be forking out about $2,050 in 2013-14.
On the AEMC’s estimates, the two states with the most consumers – NSW and Queensland, with 4.5 million residential account holders between them, half the national total – will be the ones to see the highest prices rises: 33 per cent south of the Tweed and 32.2 per cent north of the river.
The AEMC breakdown of costs sees networks (transmission and distribution) contributing half of the increases across the country with wholesale energy prices (including the impact of a carbon charge) adding 40 per cent.
The lack of mainstream media follow through is not surprising at all.
They are the sand that the mainstream masses have their heads buried in.
Their job is done.