Wednesday, 26 October 2011

Uncertainty plagues power

Adelaide Advertiser
19 Oct 2011, Page: 17

ELECTRICITY suppliers have criticised the Opposition for creating investment uncertainty in the sector, which could force electricity prices up by as much as 15% in future. The Energy Supply Association of Australia's Clare Savage said Opposition Leader Tony Abbott's plan to scrap the carbon price if elected and his warning to businesses that future carbon permits will be rendered worthless, has created fresh uncertainty for energy suppliers and could lead to higher electricity prices. She said the EASS had commissioned modelling which showed that "even a 5% reduction in electricity 'contracting' could result in a 10% increase for retail prices for households in a single year, and up to 15% increase in retail prices for large users". The carbon pricing scheme will become law next month.