How does Carbon Pricing work?
The Federal Government is introducing a price on carbon from July 1st 2012. The
carbon pricing scheme requires a number of greenhouse gas-emitting businesses in
Australia to buy permits to offset emissions produced after July 1st 2012. In the
case of electricity and gas, various parties in the supply chain (such as coal-fired
power stations) are required to buy carbon permits. This has made it more expensive
for energy retailers to buy wholesale energy to on-supply to you and as a result
rates have increased to reflect this additional charge. The best source of information
about this topic is the Government website: www.cleanenergyfuture.gov.au
How it works - electricity
What goes into my energy bill?
The average retail customer’s electricity bill*:
*Averages provided by the Commonwealth Treasury 2012. Individual bills will vary.
- 51% Network costs - this is what you pay your local Distribution Network Service
Provider for the use of poles, wires, meter readers and other items in the distribution
- 20% Wholesale costs - the cost your retailer pays for your wholesale electricity.
- 9% Carbon price
- 4% Environmental Schemes – Your retailer’s contribution to other compulsory Federal
and State Government environmental schemes.
- 16% Retail services - What you pay your retailer for retail services and customer
What is GreenPower?
The Facts about GreenPower and the carbon price
The National GreenPower Accreditation Program is a voluntary program that
enables your energy provider to purchase renewable energy on your behalf.
GreenPower providers demonstrate this by purchasing and surrendering
Large-scale Generation Certificates (LGCs) from accredited suppliers.
When you purchase GreenPower, you are supporting the production
of electricity from government accredited renewable sources over and
above mandatory targets. This clean energy does not feed directly into
your power supply, but is added to the electricity grid on your behalf.
You will continue to receive your electricity supply from the grid which
is made up of a mix of generation sources.
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