Carbon price impact on power bills minimal: Origin chief
Origin Energy chief Grant King says the Government’s carbon pricing regime won’t have a signficant impact on household electricity prices.
Speaking in Sydney on Thursday King said Australians typically pay around $1200 a year for electricity, 54 percent of which comprises network costs, with wholesale costs 36 percent and the balance in retail.
“We expect tthat increased network costs that have driven increases to date have peaked and will moderate over the next few years,” King said
King said that while the $23 per ton carbone price could drive a 50 perent rise in wholesale prices over the next five years, these comprised only part of a household bill.
“We agree with government estimates that a carbon price of $23 a tone will lead to a 10 percent increase in the retail cost of electricity or about $2.30 per week,” King said.
Given the expected 20 percent, five year rise in household incomes he said it was “unlikely” that the cost of energy would become “significantly more burdensome on consumers.”
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