Country Energy customers hardest hit by Kevin Rudd’s ETS – electricity prices to rise by 62 per cent on North Coast

December 16, 2009

North Coast residents will be hardest hit by increases in their electricity bills as result of Kevin Rudd’s proposed Emission Trading Scheme, with the Independent Pricing and Regulatory Tribunal (IPART) forecasting price increases of 62 per cent for Country Energy customers.

IPART has recommended to the New South Wales Government that Country Energy customers should pay, on average, an extra $893 per year between now and 2012/13. IPART noted the total cost increase reflected the significant impact of the proposed ETS. Federal MP Luke Hartsuyker said Kevin Rudd’s ETS would be a primary reason for the price slug.

“Kevin Rudd has misled North Coast residents over the real impact of his ETS on electricity prices. Country Energy customers on the North Coast are going to be hardest hit with electricity price increases of 12 per cent in 2010/11, 17 per cent in 2011/12 and 23 per cent in 2012/13. These independent figures differ significantly from the Rudd Government’s own forecasts.

“It is very clear that Kevin Rudd’s compensation for the ETS will fall well short of the impact on household budgets. The compensation fails to cover the cost increase in electricity, let alone the impact the ETS will have on grocery prices and everything else you buy. This will particularly hurt pensioners plus low and middle incomes households who are already struggling with the rising cost of living and increased interest rates.”

Mr Hartsuyker said electricity price hikes would also hit small business hard and that would cost jobs. “IPART forecasts the average small business with Country Energy will be slugged almost $3000 extra each year between now and 2012/13. This is a huge impost on small business at a time when there is a lot of economic uncertainty. Businesses which are energy intensive may have no other choice but to close their doors. Other businesses will have no choice but to increase prices or cut back on staff.”