Electricity prices would be lower under a Coalition Government and without Labor’s carbon tax, an independent state regulator has confirmed today.
Paul Kerin, Chief Executive Officer of the Essential Services Commission of South Australia, was commenting this morning in the wake of this week’s draft determination by the Commission on standing contract prices for electricity.
DAVID BEVAN: “So, if Tony Abbott wins the next election, Coalition Government remove the carbon price, the wholesale price of power will go down?”
PAUL KERIN: “Well, it probably would, yes, and we’d look to make an adjustment at that time.”
DAVID BEVAN: “By how much?”
PAUL KERIN: “It would depend on what forward contract prices look like at the time. As an indication, I’d say, when the carbon tax came in, each state regulator increased the price of electricity anywhere between about 4½ per cent and 8 per cent.”
891 ABC Adelaide, 4 October 2012
We welcome this independent regulator’s confirmation that axing the carbon tax which will be the Coalition’s first order of business in government will see lower electricity prices for consumers.
The Coalition, in government, will demand the full impact of scrapping the carbon tax be passed through to consumers. In states where the carbon tax impact has been even higher than in SA, the reduction in power bills will be even greater as the full carbon tax cost is removed.
Having recently feigned concern at the cost of electricity, if Julia Gillard was serious she would do the one thing in her power to lower electricity costs and axe her carbon tax.