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Electricity bills 'to soar regardless of carbon tax'

PostPosted: Sun Oct 24, 2010 6:56 am
by HVPA_research
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By Paula Kruger, ABC News, Fri Oct 15, 2010

In the debate about how to respond to climate change, those opposed to putting a price on carbon argue that doing so would cause electricity prices to sky-rocket.

But one of the country's largest energy retailers is warning that electricity bills are set to soar regardless.

Energy retailer AGL has done some modelling on electricity prices in Queensland and New South Wales and found that power will soar in price by 2015.

They say state governments need to start planning for so-called fuel poverty - when households spend 10 per cent or more of their disposable income on electricity.

AGL's chief economist Paul Simshauser says the soaring electricity prices could lead to a GST windfall for state governments, and that some of that revenue should be handed back in the form of power bill rebates.



AGL is quite consistent here. They always supported carbon trading and carbon tax. One can suspect that this is not for environmental reasons, hope for greater, cemented-in, profits more like it. Paul Simshauser does not give reasons for the the energy price rises. We had over thirty percent price rise in domestic electricity last quarter without any deep physical reasons for it. All this talk about energy shortage and future brownouts on the East Coast is probably just a ground softening process for a full-scale launch of the coal seam gas industry.