The consumer watchdog is confident it can police the electricity sector to ensure any savings to come from scrapping the carbon tax are reflected in household energy bills.
The government has promised that abolishing the carbon tax will cut electricity bills by nine per cent and gas bills by seven per cent, and deliver a $550 a year saving to the average household.
The Australian Competition and Consumer Commission (ACCC) will be given extra powers and funding to ensure price cuts from the carbon tax repeal are passed to consumers.
When pressed on what savings consumers could expect from the repeal, the ACCC's Scott Gregson said the watchdog was "not in the business of specifying specific prices".
But he was confident the ACCC would have the capacity to ensure all price rises flowing from the carbon tax would be removed.
"The nine per cent (rise in electricity costs) attributed to the carbon price at the time of the introduction, we'd expect similar moves in reverse associated with the carbon repeal," he told a Senate inquiry into the repeal bills on Tuesday.
The ACCC will investigate any businesses accused of not passing on the savings or making misleading claims after the repeal of the carbon tax, and reserves the right for court action if necessary.
But the Energy Supply Association of Australia (ESAA) was less confident of a uniform drop in electricity prices across the board, saying it would vary from state to state.
The peak industry body representing the power sector in Australia said it "couldn't guarantee" everyone would make the same savings on their bills.
"It's not a one-size-fits-all reduction," chief executive officer Matthew Warren told the inquiry.
"The original maths on this was a nine per cent average increase across Australia, but that didn't mean that every bill went up by nine per cent."
In its submission to the carbon tax repeal bills, ESAA said the time taken to implement the carbon price provided some indication of the time required to unwind the impost.
