The residents of New South Wales are about to be hit, not only with the carbon tax from the 1st July 2012, but also savage price increases for electricity.  IPART,  the Independent Pricing and Regulatory Tribunal has recommended increases in the cost of power of 16%.

To add insult to injury, those in the regional areas of the state will have to pay more than those in the cities, depending upon where they live.  This will add approximately $315 to the average annual power bill.  Customers of EnergyAustraliawill have to bear the heaviest burden of those increases.

The average annual bill for Energy Australia customers will rise by $338, while Integral customers will pay $182 more.

But Country Energy customers will be the hardest hit, with their bills to go up by $381.

But neither IPART, nor Mr Combet have detailed the flow-on effect of this savage increase.  And who uses electricity?:-

  1.  all of the businesses that do will be passing on this to their customers together with a subsequent increase in the cost of their products and who again pays, yep us….. the 16% is small,
  2. Your mortgage payments will increase,
  3. your fuel prices will increase,
  4. your grocery prices will increase,
  5. all motoring costs fuel and maintenance and rego etc will increase,
  6. insurance will increase,
  7. the Internet will increase,
  8. your phone bill under a digital network,
  9. white goods will increase,
  10. electrical appliances will increase,
  11. council rates will increase,
  12. school fees will increase,
  13. transport costs will increase,
  14. clothing prices will increase,
  15. meat,chicken & seafood will increase,
  16. School fees will increase, School uniforms increased,
  17. Increased costs of sports and sports equipment,
  18. and of course Doctors bills, hospital bills, veterinary bills etc. will also increase,

it just goes on, and no one is getting compensation for all of this, if you get it at all.

Then there is this:

Mr Boxall says there is more than one reason why such a large increase is necessary.

“Around half of this increase is because of rising network costs, that’s pole and wires, and the other half is due to the introduction of the carbon price,” he said.

“Unfortunately it’s necessary, because retailers face these costs of poles and wires and they also face the increased costs of carbon pricing, and they have to be able to pass them on.”

It is not as if these customers can say: “Oh well, you know we’ll just go over to gas”….Look at what is happening there:

IPART also revealed that gas utilities have estimated the carbon tax would increase gas prices by between 6 per cent and 9 per cent in NSW from July 1, costing a typical household as much as $84 a year.

…..and the reasons for the increase in gas prices?   You guessed it, the carbon tax.

We are supposed to be fully compensated for this carbon tax by the Federal Government, but on present indications such recompense will be far from adequate.  To make matters even worse, poorer households may be well out of pocket after this tax comes into effect and, indeed, the compensation package won’t exist for some households.

THE Gillard government’s carbon tax will force up the cost of living for an average family with two teenage children by $653 in its first year.


However, reductions in income tax and increases to government payments would see that same family on a combined income of $100,000 receive $679 in compensation.

The government revealed today that over four million households would receive assistance that exceeded the cost impact of a carbon price.

Nearly six million households will receive assistance that covers all of their average price impact and about eight million households will receive some form of assistance.

Nine out of 10 households will receive assistance, with the government saying the cost of living impact of a carbon tax will be 0.7 per cent or $9.90 a week.

But it has sought to allay concerns by announcing compensation arrangements of $10.10 a week for average households.

See table in the link below:-

Greg Combet’s response to the complaints of the Premiers of NSW andQueenslandwas a suggestion to those States to cut some of their own green energy schemes.  Peter Boxall, the IPART Chairman, said there would be cases where the compensation would be insufficient to cover costs.

But wait a minute Mr Combet, if the other green schemes, including a federal government requirement that utilities source one-fifth of their electricity from renewable sources by 2020, adds another $147 to the average bill and thus additional income for the Government coffers, what is the point in reducing your Government’s potential income.  There’s something inconsistent here.  Something just does not quite add up.  You might care to explain that to us Mr Combet.

Mr Combet might also care to explain how it is that the compensation on offer to households is not going to be sufficient to cover the actual cost incurred due entirely to this insidious tax.  He might also like to provide us with details of his calculations and how it will affect those 1 out of 10 households who will not benefit from any compensation and how they will manage with the increases to their daily cost of living.

So how about it Mr Combet?   Care to explain?


Julie Goker Godson

for the Editors