Do you realise how little I want to have a discussion on Carbon Pricing? The same loonies from either side banging away with the same tired arguments that have already been done to death elsewhere and not an original idea to be had out of either pernicious lot.
So with a heavy heart we note that ActewAGL have felt moved to further explain their price rises which many people around Canberra have been excitedly waving around as it contradicts a lot of what the Gillard Government has been saying:
“A legitimate question is being asked about why the carbon impact for ACT electricity customers is 14.2 per cent, compared to the Federal Government’s assessment that overall for Australia it is around 10 per cent,” said ActewAGL General Manager Ayesha Razzaq.
“The reason is that electricity is much cheaper in the ACT than most other states and territories – which is very good for our customers. The effect of this is that the carbon price is a bigger proportion of our lower prices than it is of the higher prices elsewhere in Australia.
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“As an analogy, if something costs $100 and $10 is added to the price there is a 10 per cent increase. If something else costs $50 and $10 is added to the price there is a 20 per cent increase. In the ACT, electricity prices were lower to start with, so the additional cost of the carbon price is a larger percentage.
“The 10 per cent impact is a national average figure – which naturally means that some states have a higher or lower percentage impact. The actual impact of the carbon price for customers is different depending on a number of factors, including household consumption.
“In the ACT, the price increase is determined, not by ActewAGL, but by the Independent Competition and Regulatory Commission. ActewAGL benefits in no way from this price on carbon.
So there you go.