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The Forum > General Discussion > Why I think the carbon tax/ETS is wrong

Why I think the carbon tax/ETS is wrong

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The price of carbon does not come into the price of power when it is bought. It's supply and demand. If the demand is not there power is cheap. A high demand calls for a higher price.
At the same time the govt; sets an overall price for power no matter what the demand. The power price is set annually, currently 8 cents / kWh. That means when the price of power is above 8c /kWh the retailer loses, and when it's below 8c / kWh the retailer wins.
The currant retail price for power is artificially high, because the retailers are conglomerates. As more retailers come on board the price of power will be less, due to competition. Electricity can retail at 18c / kWh with good margins for retailers as of now.
Posted by doog, Sunday, 21 July 2013 8:24:49 AM
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You can generate coal fired power for less than 8 cents per kwh, and you can provide power continuously. The straights we are in now stem from a lack of new conventional generating capacity. Were renewables capable of delivering, we would not see this happening.
Posted by Fester, Sunday, 21 July 2013 11:59:12 AM
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...The currant retail price for power is artificially high, because the retailers are conglomerates. As more retailers come on board the price of power will be less, due to competition. Electricity can retail at 18c / kWh with good margins for retailers as of now

Doog, not that long ago, our power was supplied by Energex, that was it.

Then Peter Beaty said he was going to introduce new players into this monopolized market, to install competition and reduce prices.

Guess what!, we got the competitors but the prices went through the roof.

So how will this be diffent this time?

Also, you said earlier that as generators increase prices, deman will drop, and so too consumption/emmisioms.

So why the need for the tax, as all that is needed is a levy placed on the end user, they will reduce consumption, emissions will reduce and no tax on those who create jobs.

Same result, less hastels.
Posted by rehctub, Monday, 22 July 2013 7:36:01 AM
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Energex i think is a distributor. And were being subsidized. You will not have not much luck in QLD until you get deregulated retail electricity.
The price for QLD power for 2013-2014 is .065cents/ kWh off peak and .089 / kWh peak so mark up from there is how much you are being ripped off by. At the moment QLD power is selling for 59.51$ / MW = 1000 kWh. or 5.9c / kWh.
All power in the eastern side of AU and SA are linked and all generated power goes into the same selling pool. Vic is completely Deregulated. NSW is well on the way and QLD is miles behind as usual.
Because you can't distinguish between renewable energy and coal generated power the tax has to be specifically targeted. There is no tax on renewable power, or gas fired power. Only coal power.
Posted by doog, Monday, 22 July 2013 8:21:35 AM
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