THURSDAY 21 JUNE, 2012 |
100% GreenPower Customers Shouldn't Be Whacked With Carbon Tax
The Sustainable Energy Association of Australia (SEA) says the many thousands of
electricity customers opting for 100% GreenPower products available from
electricity retailers shouldn't be hit with any carbon price related power bill
increases from July 1.
Within the next few weeks, electricity costs throughout the nation are set
to increase substantially
for most households and small business.
While these increases will include a component due to the introduction of
Australia's carbon tax and most households will receive some level of
compensation for this aspect of the increases, how the price on carbon will
affect electricity customers who have opted for 100% green power products still
100% GreenPower customers pay a premium of around 10% to ensure all of their electricity consumption is
matched with energy generated by GreenPower accredited renewable sources.
"Obviously the price of 100% green power electricity offered by retailers to customers should not change on 1 July 2012 as there is no carbon emissions associated with electricity from
renewables, and so there should be no carbon price to pass on," says SEA
chief adviser Professor Ray Wills.
However, the situation may not be that straightforward from a policy aspect given the mechanics
behind the renewable energy certificate and GreenPower system.
The last mention of the interaction of the carbon tax and GreenPower products on
the Government's GreenPower site is dated April 19 (at the time of
At that point, the National GreenPower Steering Group was still in discussions with energy retailers and the Commonwealth Government regarding
"We expect to have information published prior to 1 July 2012 regarding how the Carbon Price may interact with GreenPower, this information will be posted on our webpage and customers will be notified through a bill insert in the
mail," reads part
of the statement
A customer who called one of Australia's largest electricity retailers this week
reported to solar provider Energy
that when negotiating a better deal for electricity supply, it was
suggested by the retailer he drop his 100% GreenPower product to save money as
the carbon tax 'covered it' - a suggestion the customer found rather confusing
and as such, has opted to retain his GreenPower product while the situation is
Professor Wills says the SEA also expects retailers around Australia to review
buyback rates offered for solar power and other forms of renewable energy as
these sources effectively become more valuable as of 1 July 2012.
"An increased price of electricity should impact on how retailers calculate of value of solar electricity generated on roof tops and so the price of renewable energy
Electricity Price Rise Roundup
Other news for Thursday 21 June, 2012
Return to main renewable energy news section
Other Energy Matters News Services