NSW electricity retail prices increase following introduction of carbon price
Regulated electricity tariffs in New South Wales increased today, following a decision by the Independent Pricing and Regulatory Tribunal (IPART) as part of its annual review of electricity prices. IPART’s final decision allows for an average price increase of 18% for residential and small business customers, with most of the price increase due to an increase in network costs and the introduction of the carbon price.
Frontier (Australia) produced a report for IPART assessing the impact of introducing a carbon price on the cost of supplying electricity to customers on regulated retail tariffs. Using detailed modelling of the National Electricity Market, the report concludes that the carbon price would be passed through to wholesale pool prices at a rate of close to 100%, accounting for the significant rise in electricity prices.
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