- What is carbon pricing?
The carbon pricing scheme requires a number of greenhouse gas-emitting
businesses in Australia to buy permits to release emissions. This makes
these activities more expensive and provides businesses with an
incentive to create new, cleaner ways of operating.
- When will carbon pricing start?
The carbon pricing scheme will start on July 1st 2012.
- How much is carbon pricing? Will this go up in the future?
The carbon price will start at $23 a tonne in 2012-13. In each of the
next two years it will rise in line with inflation to $24.15 in 2013-14
and $25.40 a tonne in 2014-15. From 1 July 2015 the carbon price will no
longer be fixed by the Government but will be a ‘floating’ price
determined by forces of supply and demand in the market.
- Who pays the carbon pricing?
A number of greenhouse gas emitting businesses will be required to buy
carbon permits. However, the cost of buying these permits may be
recovered by increasing the price of the goods and services they
provide. As a result, some products may be more expensive as a result of
carbon pricing. This means that the end consumer may contribute to some
or all of the cost of the carbon pricing scheme.
- Why is the Government introducing a carbon price?
Simply Energy can’t speak on behalf of the Government. We recommend you speak with your local MP or visit www.cleanenergyfuture.gov.au
- Are your competitors passing through the carbon price? If so how much?
Simply Energy can’t speak for other retailers. However, it is expected
that other businesses that face additional costs due to carbon pricing
would increase their prices to recover these additional costs.
- Why does carbon pricing mean my electricity and gas rates increase?
Greenhouse gas-emitting businesses will be required to buy carbon
permits. The cost of buying these permits may be recovered by increasing
the price of their goods and services.
In the case of electricity and gas, various parties
in the supply chain (such as coal-fired power stations) will be required
to buy carbon permits. This means the wholesale price Simply Energy
pays for these commodities will increase and therefore our prices will
reflect this additional charge.
- Is Simply Energy making a profit from carbon pricing?
No, Simply Energy is only passing on the additional costs it incurs.
- Will Simply Energy charge an administration fee as part of managing carbon pricing?
We have no plans to charge our customers a new ‘administration fee’ and
are only looking to pass on the additional costs incurred as a result of
the introduction of a charge on carbon emissions.
- How does a customer calculate the impact of carbon pricing on them?
The Federal Government has estimated that the carbon price will increase
electricity prices by $3.30 a week and gas prices by $1.50 a week for
the average household. We would recommend that you use the calculator
the Federal Government has set up at www.cleanenergyfuture.gov.au.
- Is my energy dirty?
All electricity is generated into a pool, so the energy that arrives at
your home or business may have been generated from almost any
combination of power stations including coal-fired, gas-fired and
renewable generation such as wind and hydro.
- Will the additional cost of carbon be displayed on my bill? If not why not?
No, you will not see a line item for carbon pricing on your bills.
The cost of carbon is effectively embedded in the
total price Simply Energy pays for the gas and electricity it purchases
from various counterparties. Arrangements vary between counterparties
and change as new contracts for purchase are entered into. This makes
calculating the carbon costs associated with a specific customer's
energy bill complex. As a result, Simply Energy will not include carbon
costs as a line item on individual bills.
- Will carbon pricing affect my gas bill as well as electricity?
Yes, because the Federal Government's legislation covers emissions from the production, transportation and supply of gas.
- What is Simply Energy doing to combat climate change more broadly?
Simply Energy participates in a number of schemes designed to combat
climate change. We participate in Government schemes to increase
Australia’s renewable energy generation and offer our customers feed-in
tariff rates for the installation of solar panels. We also offer our
customers the opportunity to introduce more energy efficient technology
and appliances into the home, through business partnerships and
participation in State Government energy efficiency schemes.
- Is Simply Energy going to buy electricity from Hydro Generators to avoid the carbon price?
All electricity is generated into a pool, so the energy that arrives at
your home or business may have been generated from almost any
combination of power stations.
Simply Energy is always seeking to minimise the cost of the electricity it purchases.
- How much will my electricity bill increase due to the carbon pricing?
The Government has estimated that the carbon price will increase electricity prices by $3.30 a week for the average household.
- How much will my gas bill increase due to the carbon pricing?
The Government has estimated that the carbon price will increase gas prices by $1.50 a week for the average household.
- Will I get a Government compensation for this increase? Will this appear on my bill?
he government has stated that 9 out of 10 households will receive
assistance in the form of tax cuts and increases in family payments,
pensions and allowances. Visit www.cleanenergyfuture.gov.au to find out if you are eligible.
No, this will not appear on your energy bills.
- If I use less energy, will I pay less for carbon?
Yes. Carbon pricing will predominantly affect usage charges. So if you use less energy, the financial impact should be lower.
- Why is the price increase on my bill greater than the carbon increase?
Prices have also increased due to other factors such as compliance with
mandatory Federal and State Government approved environmental schemes as
well as increasing network costs as approved by the relevant regulator.
- Will I still receive my prompt payment discount?
Yes. Your total bill will increase because of the carbon price but your discount remains the same.
- I am on a GreenPower accredited offer. Am I exempt from paying a Carbon Price?
No. If you have chosen a GreenPower-accredited product you pay a premium
above the price of other (non-GreenPower) electricity products to
support renewable generators like wind farms. This is achieved through
Simply Energy purchasing additional GreenPower approved certificates
from renewable energy generators. This will not change with the
introduction of carbon pricing.
- I have a solar PV system on my home/business. How does carbon pricing impact me?
Solar PV systems generate electricity which is either consumed in the
home or exported to the electricity grid. Generating electricity through
solar systems may reduce the amount of electricity that needs to be
bought from your energy retailer. This could reduce the carbon costs you
pay, but you will still pay for the cost of carbon relating to the
energy you consume from the national electricity grid.
- Will carbon pricing increase my feed-in credit?
No, carbon pricing is not directly linked to feed-in tariff credits.
Your feed-in credit rate will be specified in you retail energy
contract, and is generally dependent on State Government regulation.
Generating electricity through solar systems may
reduce the amount of electricity that needs to be bought from your
energy retailer. This could reduce the carbon costs you pay, but you
will still pay for the cost of carbon relating to the energy you consume
from the national electricity grid.
- Can I choose where my electricity comes from?
No, as all electricity is bought from a national pool, it is not possible to identify which generator produced your electricity.
- What is the difference between GreenPower and other renewable energy offers?
The National GreenPower Accreditation Program is a joint initiative of
the ACT, NSW, VIC and QLD Governments which allows consumers to support
accredited renewable generators. This is achieved through Simply Energy
purchasing additional GreenPower approved certificates from accredited
renewable energy generators. Some renewable generators do not meet the
accreditation environmental standards.
These include:
- Generators operating before 1997
- Hydro power where significant river diversions have taken place as part of the hydro station being built
- Biomass using native rainforests
For more information visit www.greenpower.gov.au - How does Simply Energy support renewable energy?
Simply Energy supports renewable energy through participation in State and Federal Government programs.
We offer feed-in tariffs to our customers who have their own eligible renewable systems such as solar PV. This allows us to reimburse customers who feed energy into the grid from their own systems.
The Federal Government runs three programs that
require electricity retailers to purchase credits from renewable
generators. Each credit represents one megawatt hour of renewable
generation
- The Large-scale Renewable Energy Target (LRET) supports renewable power stations such as wind farms to meet mandated targets
- The Small-scale Renewable Energy Scheme (SRES) supports smaller renewable generators such as roof-top solar PV systems
- The National GreenPower Accreditation Program is a
voluntary program, providing a premium to Government-accredited
renewable generators to exceed mandated targets
- How does Simply Energy promote energy efficiency?
Simply Energy participates in State Government energy efficiency
schemes. These schemes support energy efficiency activities such as the
installation of energy saving devices and high efficiency products. We
also provide energy saving tips to our customers through bill inserts
and our website.
- I run a small business. How much carbon pricing will I pay?
This will vary depending on how much energy your business consumes. For more information, visit www.cleanenergyfuture.gov.au/small-business/
- Can I claim carbon pricing in a tax return?
We suggest you seek advice from your accountant or financial advisor on these matters.
- Do I need to include carbon pricing in my quarterly BAS statements?
We suggest you seek advice from your accountant or financial advisor on these matters.
- Who can I complain to about the carbon price increase?
We suggest you contact your local MP about any complaints regarding the carbon price.
- Can my business claim for any Government rebate for Carbon?
For information regarding Government assistance please visit www.cleanenergyfuture.gov.au/small-business/
- How much will my electricity bill increase due to Carbon?
Cost impacts of carbon pricing will vary depending on your business type. For more information, visit www.cleanenergyfuture.gov.au/small-business/
- Will Simply Energy make money from the carbon price?
No, Simply Energy will only pass on the costs it incurs due to carbon pricing.
- What right does the retailer have to pass on carbon charges?
Depending on your agreement with your retailer, retailers will usually
have the right to pass on increased costs relating to the provision of
electricity and or gas.