Report by Synergies Economic Consulting and Roam Consulting
The Business Council of Australia has released a report showing that the carbon tax and other green energy policies now account for a total of 40 per cent of the electricity bill of a large business that does not receive government assistance.
The analysis of actual electricity prices across the mainland states of the National Electricity Market shows that, combined, the carbon tax, the Renewable Energy Target (RET), and state-based energy schemes now account for:
- up to 40% of the total electricity bill for a large business customer that does not qualify for government assistance
- 25% of the total electricity bill for a business that qualifies for moderately emissions-intensive government assistance
- 17% of the total electricity bill for a business that qualifies for highly emissions-intensive government assistance
- 11% of a typical household electricity bill.
The RET is estimated to cost up to almost 10 per cent of a typical electricity bill for a large business that does not receive any exemption, and three per cent of a typical household electricity bill.
To reduce the cost of the RET on consumers, the BCA is calling for the RET to be amended to a true 20 per cent of Australia’s electricity demand by 2020 and then wound up once all obligations under the scheme are met by 2030.
The report, Impact of Green Energy Policies on Electricity Prices, was prepared for the Business Council of Australia by Synergies Economic Consulting and Roam Consulting.