Post on 21-Jan-2016
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Putting a Price on Carbon: Who will Pay?
Financial Counselling Australia Conference16 May 2012Gerard Brody
Director-Policy and CampaignsConsumer Action Law Centre
Overview
Carbon tax and compensation Misleading advertising Unequal burden of carbon tax What’s really driving energy prices? How can advocates improve
outcomes
Impact of carbon tax on inflation
Carbon tax and compensation
Carbon tax and compensation
Couple with dependent children on moderate income ($81,640) financial assistance of between $7.90 and $23.60 a week: more
than offset the average cost impact for this household. Couple with dependent children on low income ($44,800)
financial assistance of between $11.10 and $24.10 a week, equivalent to at least 30% more than the average cost impact.
Single parent with dependent children receiving the moderate income ($54,666) financial assistance of between $8.80 and $10.60 a week which will
cover the average cost impact for this household. Single parent with dependent children receiving the low
income ($36,359) eligible for financial assistance of between $8.60 and $16.60 a
week, equivalent to at least 38% more than the average cost impact for this household.
Misleading cost of carbon tax
Role of ACCC
Some examples that ACCC has its eye on:
‘Beat the Carbon Tax – Buy Now!’ ‘Our prices will be hit hard when the
carbon price comes in’. ‘Our prices have increased by X%
because of the carbon price’
Carbon tax on bills
Proposal from NSW & QLD govt to disclose carbon tax and cost of environmental initiatives on bills
Total Environment Centre claim this will necessarily mislead consumers
Suggest ACCC should regulate as to how any disclosure is undertaken, so as not to mislead
Impact of carbon tax is complex!
How much you pay depends upon where you live
Different average energy consumption in different states
Carbon intensity of electricity consumption Electricity only versus dual fuel Would’ve been more equitable to
apply compensation to kWh/bills (i.e. concessions)
Then what is driving up prices?
Network costs Rule change proposal from Australian
Energy Regulator Ability of network companies to appeal
regulatory decisions Lack of effective competition in retail
and wholesale markets Power of 3 mega retailers Vertical integration
What can we do?
Financial counsellors and consumer advocates have powerful stories to tell about impact of rising bills
Only with publicity of these impacts will there be the political will to reform the market to address some of these issues
Questions?