Repeal falls short of forecast cuts
Figures out this week show the repeal of the carbon tax has not achieved the intended energy price reductions.
Prime Minister Tony Abbott promised that scrapping the tax would see electricity prices drop by nine per cent while natural gas prices went down by seven per cent.
But new figures from the Australian Competition and Consumer Commission (ACCC) show an actual electricity saving of 7.31 per cent on average, while natural gas prices have dropped 4.8 per cent.
Small Business Minister Bruce Billson says that while they are a bit off target, the figures are in line with government expectations.
“There is no doubt our commitment to remove the carbon tax cost from small business and household bills saved Australians money across all states and territories,” he said.
Electricity prices did see a sharp drop immediately after the repeal of the carbon tax, as they went down by 5.1 per cent in the first quarter, but the decline remained steady in the following quarter of 2014.
The ACCC is continuing its “extremely tough” stance on companies passing on savings, though most electricity retailers have complied.
The watchdog is keeping a close eye on landfill and construction industries to pass on savings too.
The state-specific carbon tax repeal savings for July to October 2014 are as follows:
- ACT 10.6 per cent
- QLD 8.3 per cent
- WA 8.1 per cent
- VIC 7.7 per cent
- NSW 6.9 per cent
- NT 5.1 per cent
- SA 4.5 per cent