Despite the hysteria associated with the price on carbon, the Australian Energy Market Commission projects expansions to the electricity network will account for 33 per cent of electricity price rises compared to 8 per cent by a carbon price.
In Parliament, I asked how the State Government will slow network expansion. For example, through mandatory minimum budget expenditures for energy efficiency and demand management.
Unfortunately, the State Government is adding to the hysteria by making electricity retailers print on all bills the estimated annual contribution of the carbon price based on a 'typical' household bill. Specific calculations for each bill based on circumstances and usage will not be made and the statement could breach ACCC guidelines. Bills will not include estimates for the contribution of network expansions or profit.
Households will be compensated for any electricity price rises caused by the price on carbon through the Household Assistance Package and the price on carbon will encourage energy efficient and low carbon power supply, which can reduce rising costs.
The City of Sydney, already Australia's first carbon-neutral council, is investing in improving energy efficiency, generating renewable energy and taking four low-carbon zones in the city off the coal-fired electricity grid by creating energy, heating and cooling at a local level.