Government claims evidence shows carbon tax working

The Department of Climate Change and Energy Efficiency claims reports published today show the carbon price is not the most significant driver of rising household electricity prices and is helping reduce Australia’s greenhouse gas emissions.

The Productivity Commission’s report on Electricity Network Regulatory Frameworks confirms that the carbon price will make up less than 8% of New South Wales household electricity bills in 2012-13.

On the commission’s figures, this amounts to $3.20 a week - and the Gillard government is providing households with $10.10 a week on average in assistance through tax cuts, higher family payments and increases in pensions, benefits and allowances.

In contrast to this modest impact, the commission’s analysis shows that electricity network charges make up 52% of NSW household power bills, or $22.20 a week, and that these network charges have risen by 130% since 2007-08.

Also today, Australian Energy Market Operator statistics show the emissions intensity of Australia’s electricity generation sector has fallen since the carbon price started on 1 July this year.

The AEMO figures show that in the first three months of the carbon price, electricity generated for the National Electricity Market emitted 0.85 tonnes of carbon pollution for each megawatt hour - a 7.6% decline in emissions intensity compared to 2011-12.

This means the amount of carbon pollution released into the atmosphere in the September quarter this year was 2.4 million tonnes lower than it would have been if emissions intensity had remained at the 2011-12 level of 0.92 tonnes per megawatt hour.