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.
There are further details available on household assistance, the carbon price and how to save money on your electricity bills.
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