Independent Member for New England, Tony Windsor is pointing the finger squarely at the New South Wales government for using the Federal Government’s price on carbon as a shield to hide from the public their own responsibility for rising power prices.
Last week, the Independent Pricing and Regulatory Tribunal (IPART) determined that power prices in the New England would rise by an average of 17.6 per cent from July 1, 2012, blaming most of the rise on the state government’s network upgrades.
Despite the fact that IPART stated the price on carbon accounts for less than half of the rise in power prices in the New England, NSW Energy Minister Chris Hartcher has wasted no time blaming it.
However, the federal government is paying compensation to nine out of ten households for the impacts of the price on carbon, based on Treasury modelling that predicted household costs would rise by 0.7 per cent, including an electricity price rise of 10 per cent.
Mr Windsor says IPART has now confirmed that the Treasury modelling actually overstated the impact of the price on carbon on electricity prices.
“Nine out of ten households will receive some compensation for the impact of the price on carbon, with most assistance directed towards pensioners and people on lower incomes.
“Single pensioners will receive pension increases of up to $338 a year, while all working people making less than $80,000 will get a tax cut, and for most New England workers that tax cut will be worth at least $300 a year.
“This compensation was based on Treasury modelling predicting a 10 per cent rise in electricity prices due to the price on carbon, which IPART now says will actually only be 7.9 per cent in the New England.
“But despite the lower-than-expected impact of the price on carbon on New England electricity bills, compensation will remain the same.
“So the IPART determination shows that most New England residents will receive more carbon tax compensation for electricity than they will actually need.”
However, Mr Windsor points out that still leaves a price rise of 9.7 per cent in the New England due to state government-controlled network upgrades that local people won’t be compensated for.
“IPART has decided power prices will rise next year by 9.7 per cent in the New England due to upgrades required by the state government’s decaying network.
“This comes on top of price rises of 42 per cent over the last two years, 35 per cent of which IPART attributed to the cost of network upgrades.
