Power Bills To Increase Under New Scheme

A treasury official has told a Senate hearing that households will pay an extra $78 for their electricity in the first year of an emission trading scheme, rising to $146 in the second year.

Treasury's general manager of its macroeconomic modeling division Meghan Quinn stated that the prediction could be over-estimated, because figures are based on household spending trends that go back nearly five years.

Treasury's assumption for the 2011/12 year which is the first year of operation for the carbon pollution reduction scheme - is that retail electricity prices are expected to rise 7 per cent, the equivalent of $1.50 a week extra or $78 a year.

In 2012/13 they will rise by an additional 13 per cent, or $2.80 a week or $146 a year.

These figures have been calculated on the assumption that the entire cost will be passed through to consumers and that there will be no change in behaviour either at the consumer level or the producer level.

Published on October 10-rd, 2009 in Electricity
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.