BHA

Why electricity prices are rising

From "Carbon vacuum fuels cost of power" - Annabel Hepworth and Sid Maher, The Australian, February 21, 2011

THE Gillard government's renewable energy scheme will saddle consumers with more than $1 billion in extra electricity costs this year, and uncertainty created by its failure to implement a carbon pricing regime is forcing power bills higher than they would otherwise be.

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However, a carbon price of $26 a tonne is still estimated to increase electricity costs for households by 17.6 per cent in 2012-13, taking an annual bill for a Sydney home to $2000 from $1700.

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The research attacks the government's renewable energy scheme - particularly subsidies for household solar photovoltaics panels - as not offering value for money in terms of either emissions abatement or support for innovation.