FEDERAL Lyne MP David Gillespie says the Federal Government has issued a directive to the ACCC to start monitoring electricity and gas prices to establish a baseline price before the carbon tax is abolished.
He said the monitoring would help ensure savings are passed on to business and private customers when the carbon tax was abolished.
“The move delivers on a key election commitment to abolish the carbon tax, to help build a stronger economy, and on average boost the family budget by $550,” Dr Gillespie said.
“As part of the direction, the ACCC will be able to request information on the prices being charged by business.”
Dr Gillespie said the repeal of the tax would help deliver more money to help make ends meet and to bring down the cost of living for local families. He said energy-dependent businesses would also benefit from reduced energy costs.
“It also means that small businesses will no longer need to absorb the cost of the carbon tax, increasing their productivity and competitiveness and contributing to the country’s economic growth.
The move to axe the tax and the government’s claims regarding the power price cuts that would result have been slammed by the local branch of Climate Change Australia, which described Prime Minister Tony Abbott’s power promises as “a triumph of politics and ideology over facts and good policy”.
Port Macquarie CCA president Harry Creamer said scapegoating the carbon tax for high electricity prices was misleading because most cost increases came from ‘gold plating’ the poles and wires.
He said its removal would also be unlikely to result in the fall in prices promised by the government.
“The Prime Minister and Minister for the Environment now say the true amount is equal to nine per cent,” Mr Creamer said.
“This is a far cry from the claims they made in opposition that the carbon price led to rises of as much as 70 per cent. Now in government, the Coalition uses the same numbers used by Labor.
“Now let’s look at a typical electricity bill and assume usage of 18 kWh per day. Abbott’s power price promise should deliver savings of $46 per quarter. Origin Energy currently charges 31.11 cents per kWh for residential customers, so we are looking for that to come down to 28.31 cents.
“We can see that the carbon price accounts for less than three cents per kWh or about $3.70 a week – hardly something to be concerned about. And let’s not forget the Household Assistance Package, compensating households up to $10 a week. Incomes have also been increasing since 2011. Electricity accounts for about 2.6 per cent of total household spending.”
Mr Creamer said consumers deserved a break after 10 years of power price rises, but this was not the way to do it.
