Electricity price impact small under carbon pricing
Given that many of Australia’s electricity companies are heavy polluters, electricity prices will be influenced by the carbon price – but the impact on households will be minor.
The carbon price will only increase household electricity bills by an average of $3.30 a week.
It is the maintenance of the electricity network – poles, wires and other infrastructure – that contributes to the majority of your electricity bill (more than 50 per cent).
In fact, according to Commonwealth Treasury figures, the carbon price will make up just $9 out of every $100 on household electricity bills.
To offset this small impact, the Government is providing those households that need it most with $10.10 a week on average.
This is being provided through increases in family payments, pensions and allowances and tax cuts will be permanent.
A price on carbon is the most environmentally effective and economically efficient way to reduce pollution. Pricing carbon will allow Australia’s economy to prosper in the future.