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HOUSEHOLDS are certain to face even higher electricity bills but will get compensation to cushion the blow only if Australia puts a price on carbon, Prime Minister Julia Gillard warned last night.

Stepping up her push to put a price on pollution, Ms Gillard hit back at Opposition claims that it would be an electricity tax that would punish households.

The PM said a lack of investment in energy because of uncertainty had already seen household electricity prices jump by 40 per cent in the past three years with further price rises expected.

“Revenue from the carbon price delivers transition support to households and industries,” Ms Gillard said in a speech to the Australian Industry Group last night.

“No such revenue is available to assist with the costs of the current price rises around the country – nor for future rises from an on-going investment strike.”

Ms Gillard said Australia faced a tricky trifecta of a rising dollar, rising electricity prices and rising anti-reform voices.

She warned serious economic reform was threatened by the Liberal Party’s “simplistic solutions” about the dollar and interest rates.

“If a strain of economic Hansonism takes hold on the conservative side of politics in a Parliament which is so finely balanced, our long-term prosperity is at real risk,” Ms Gillard said.

Fat tax will fall flat, Page 10

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Tags: australia carbon, Carbon Price