Electricity Industry Carbon Rip-off in the Wings

Thursday, 07 August 2008 22:53

“TEC has obtained a document showing that the electricity industry are seeking to pass on the full carbon cost to business consumers in contracts for future supply, even though they expect to get free permits and compensation under an emissions trading scheme,” said Jeff Angel, Director of the Centre.

“A large amount of cash is going to be given to the coal fired sector under the Rudd government’s Green Paper, yet there will be no discount to consumers.   It’s really a double rip-off of consumers and the environment - and cash transfer to coal, because coal power shouldn’t be getting the subsidy in the first place.”

“With the industry pushing for an end to price controls on residential prices, it’s only a matter of time before households will also be affected.”

TEC has obtained a document by the Australian Financial Markets Association (AFMA) Electricity Committee which contains a carbon clause for the industry that uses ‘average carbon intensity’ and the ‘daily spot price for Australian emissions trading permits’ to make ‘carbon adjustment’ to prices charged.  

“Electricity generators and retailers are insisting this clause is inserted in customer contracts,” Mr Angel said.

“There’s a simple way out of this – don’t give the coal fired generators any subsidies.”