Carbon tax uncertainty will hit hardest in Victoria, the Herald Sun reports this month.
Energy Supply Association of Australia chief executive officer Brad Page said Victorian households could expect the highest increases in energy bills as a result of a carbon tax, because of their reliance on bigger-polluting brown coal generation.
“Because Victorians have higher emission generation from brown coal it is quite likely that their carbon costs will be higher than for consumers in other states, at least in the first three years,” he said.
At the same time, one of the state’s largest energy retailers AGL has said that a carbon tax would have a relatively small impact on bills compared with the costs of other price drivers, such as network upgrades, construction of power generators and rising fuel costs for coal and gas.
AGL’s analysis concluded the price increase for household electricity from a carbon tax would likely be less than $3 a week – about 10 per cent of an average household’s yearly electricity bill.
This figure is considerably lower than other predictions that have been reported this month, which have put the price rise from a carbon tax as high as 30 per cent over the next three years.
One thing that remains certain is that energy prices will continue to rise for all Australians. The good news for Victorians is that the electricity market is one of the most competitive in the country, with several energy retailers fighting to win customers.
More and more Victorians are switching to cheaper energy plans to help keep their power bills low. In 2010, Victorian customers using GoSwitch’s free and impartial gas and electricity comparison service saved an annual average of $340 on energy.