Post on June 13th, 2015
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Electricity Suppliers Impacted by the Carbon Tax Raise Prices Dramatically
After the introduction of the federal carbon tax in July 2012, no households or businesses are exempt from state-to-state price increases, reflected in higher quarterly electricity bills. As a customer, it helps to understand exactly how the carbon tax has affected electricity suppliers and caused them to raise electricity rates to compensate.
As a result of the new federal carbon tax, the average household costs in Australia are expected to increase by $9.90 pw. Nonetheless, the Government reports that this amount will be offset by an average total compensation of $10.10 per week as a clean energy supplement.
The biggest factor that can be attributed to this substantial increase in household expenses is raising energy rates at up to $1.50 a week for gas and $3.30 a week for electricity.
The purpose of the carbon tax is to discourage large businesses from polluting to protect Australia’s environment and support a future with cleaner energy. The introduction of the carbon tax is expected to cut down on unnecessary emissions by 159 million tonnes each year, the equivalent of taking more than 45 million cars off the road, based on government estimations.
The good news for families that are no longer able to afford the basic cost of living in their state is that over 8 million households in Australia will be provided with some form of government assistance to cushion the blow of this new tax. The government reports that 4 million households will receive “120% of their expected average price impact” and could be better off as a result.
Yet one thing remains the same. Electricity suppliers affected by the carbon tax are raising rates state-by-state, causing customers to take a serious financial hit in expensive annual power prices. If you want to lower costly energy bills and take advantage of more affordable rates today, you should call us to compare. You could be making a money saving switch in 5 minutes time!
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