Tuesday, 3 November 2009

Envestra to pass on carbon cost

Adelaide Advertiser
Thursday 29/10/2009 Page: 47

Adelaide-based gas pipeline network owner Envestra said an emissions trading scheme would cost the company $6 million a year and consumers would foot the bill, shareholders were told at the company's annual meeting in Adelaide yesterday.Managing director Ian Little said the Federal Government's proposed carbon pollution reduction scheme, which priced carbon dioxide at $10 a tonne, would "ultimately be recovered by consumers at about $6 a householder per year".

Envestra estimated carbon dioxide leakage from its networks to be about 627,000 tonnes a year, which was "quite small" relative to emissions from coal-fired electricity generation."There is no doubt that natural gas will play a pivotal role in addressing Australia's greenhouse gas reduction target... Envestra is well placed to benefit from its position as Australia's largest distributor of this environmentally friendly fuel," Mr Little said. Shares were trading almost 2% higher yesterday, closing up lc to 54c.