Latest figures confirm carbon tax repeal not as effective as promised

The numbers are in. The Carbon Tax's repeal has indeed seen a drop in electricity prices, but not as much as the government has repeatedly claimed, data shows.

Steam and other emissions rise from an industrial plant in Melbourne, Tuesday, April 29, 2014. The Abbott government's pledge to remove the carbon tax will be tested when the new Senate is formed after July 1. (AAP Image/Julian Smith) NO ARCHIVING

Steam and other emissions rise from an industrial plant in Melbourne, Tuesday, April 29, 2014. (AAP/Julian Smith) Source: AAP

 

The Carbon Tax repeal has not seen energy price drops as much as the Coalition promised before and after the last federal election.

Yesterday's Australian Competition and Consumer Commission (ACCC) report reveals the drop in electricity prices due to the Carbon Tax's repeal for the average Australian state was 7.3 per cent, compared to the government's promise of nine per cent.

The government originally promised an electricity price drop of 10 per cent before the September 2013 election, and later revised that figure.
Gas prices were even further from the mark, with the average state and territory's drop of 4.8 per cent, compared to the forecast seven per cent drop in prices.

Electricity prices dropped more than predicted - 10.6 per cent on average - in the ACT while no state or territory saw a drop at the promised seven per cent for gas prices.

SBS contacted the Department of the Environment for comment, who said its 9 per cent electricity price drop was based on treasury modelling.

A department spokesperson said power prices in Victoria "are up to 12.4 per cent lower", and "up to 10 per cent lower" in NSW.

Those figures were not in the ACCC's report, and SBS has contacted the ACCC to check those numbers.

While those quoted figures may be true in some places across the state, the average drops for those states were much lower, and lower than the government's nine per cent promise.

"We've taken the pressure off households," the spokesperson said.

Last year, the Carbon Tax's effect on carbon emissions was revealed when the Department of the Environment released national pollution data.

Australia’s greenhouse gas emissions declined by 2.2 per cent during the time the Carbon Tax was in place.

The electricity sector - Australia's largest contributor to emissions - saw a 9.7 per cent drop in emissions during Australia's two year Carbon Tax period.

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By Jason Thomas


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