Power prices tipped to jump under a carbon tax

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Hydro Tasmania and the State Government have admitted household power bills could leap if a carbon tax is introduced in Australia.

The Prime Minister has put a carbon price at the top of her list of priorities for next year.

State Liberal MP, Peter Gutwein, says the new tax would force up electricity prices.

But the chairman of Hydro Tasmania, David Crean, says it’s unclear by how much.

“It depends on the price per tonne of carbon,” he said.

The Energy Minister, Bryan Green, has told a parliamentary hearing in Hobart, a tax of $25 a tonne would increase household power bills by about $300 a year.

“But it’s obviously weighed against what the Commonwealth would provide in terms of offsets associated with all of that,” he said.

Executives from Forestry Tasmania and Transend are due to appear before today’s parliamentary hearings.

Posted on December 6, 2010 · in Australasia

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