What Impact Will The Carbon Tax Have On Real Power Prices?


Research out of the University of Queensland suggests that the impact of the Carbon Tax won’t be as bad as imagined — but some states will do markedly better than others.

The Federal government’s estimates suggest that the Carbon tax could lead to a ten per cent rise in electricity prices, but the research (funded by the Australian Research Council, for those who like to know who’s paying the piper) suggests that for most states except for Queensland, the price rises should be considerably milder:

National average: 1.78c/KwH – up 8.9 per cent
Queensland: 2.15c/KwH – up 10.4 per cent
New South Wales: 1.99c/KwH – up 8.7 per cent
South Australia: 2.05c/KwH – up 8.6 per cent
Victoria: 1.94c/KwH – up 8.5 per cent
Tasmania: 0.79c/KwH – up 3.8 per cent

Why does Tasmania get the gentlest ride, while Queensland cops it in the neck, according to the models used? It’s because Tasmania’s electricity is less dependant upon coal generated electricity than Queensland. [University Of Queensland]
Image: ddebold


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