australia: January 11, 2010

Australia households may have to pay up to an extra $1,000 for their electricity.  The NSW regulator recently issued a draft ruling enabling the state’s three largest electricity retailers to raise their charges.  These retailers include Energy Australia, Integral Energy and Country Energy.

Almost a third of the proposed increase directly relates to the Carbon Pollution Reduction Scheme (CPRS).  The federal government has advised that the Emissions Trading Scheme (ETS) would add about $1,100 per annum to the average family’s bills as gas, fuel and grocery costs would be impacted by the CPRS.  The CPRS was voted down for a second time in the Senate on 3 December 2009.  The government will make a third attempt at winning approval for the scheme when Parliament resumes next month.  The Ministry of Environment has stated that climate data issued by the Department of Meteorology showed that 2009 was Australia’s second hottest year on record.  The ministry also added that the Senate should give the emission trading scheme the go-ahead based on this data.

The opposition and Greens are opposed to the scheme for different reasons.  The opposition claims that the CPRS is anti-business also disputing Treasury claims that most households would not be worse off.  The Greens believe the current bill has been watered down providing too many concessions to big business.

Power prices are set individually by each state within a national framework.  The country’s regulator has issued guidelines for South Australia and Queensland, with Victoria to soon follow.