Electricity price rises: the cost of making ordinary people pay

Huge electricity price rises in NSW show that Rudd’s CPRS will have more impact on power costs for working people than the government has admitted. From July 1 costs for households will rise by up to 64 per cent over three years.
The majority of the price rises, mandated by the NSW Independent Pricing and Regulatory Tribunal (IPART), are due to the cost of building new electricity transmission lines in the state.
But about a third of the price increases are a direct result of the CPRS. The CPRS, if introduced, will cause a 24 per cent rise in power costs, or $300 a year, over three years.
IPART’s estimate for the impact on power prices of the CPRS is much greater than that of the federal Treasury.
The Treasury predicted bills would rise by just $200 a year as a result of the scheme. This means the compensation the federal government is providing to households, designed to offset the impact of price rises caused by the CPRS, will be inadequate.
This news has led to calls for Rudd to increase compensation to households.
NSW Energy Minister John Robertson gently reminded his federal colleagues, “The Prime Minister is on the record saying low income families will be fully compensated for the costs associated with the CPRS, whatever they are”.
What this all shows is the huge uncertainty in modelling the effect on power prices—and working class living standards—of putting a price on carbon, whether through an emissions trading scheme or a carbon tax.
It is further evidence of the danger in promoting them as a way to tackle climate change. The climate movement cannot afford to line up behind these kind of solutions—which are going to see ordinary working class people pay, not the polluters who got us into this mess.



Solidarity meetings

Latest articles

Read more

Labor approves new coal mines and carbon bomb in Beetaloo

One year since their election Labor’s claim they would “end the climate wars” has been exposed as cover for supporting fossil fuel expansion at an alarming rate.

Why the offsets scam feeds climate catastrophe

James Supple examines why carbon offsets are a climate disaster that don’t genuinely reduce emissions—and why Labor is so committed to them

Safeguards deal still won’t deliver cuts to emissions

The Greens and Labor have struck a deal to pass the climate Safeguard Mechanism bill. While this may restrict the number of new coal and gas projects, it won’t reduce actual emissions—and is a disaster for the climate.



Please enter your comment!
Please enter your name here