Injustice To Australians: Face Heat Even Before Carbon Tax Implementation

A report published by Lobby group Energy Users Association of Australia claims that Australians are facing high electricity tariffs than normal. This has raised a doubt over implementing carbon tax in already burdened situation of people. The report also points out at the in-efficiencies in the power distribution and rubbishes the other option that the hike in electricity tariff is due to under-investment. The report favored privatization of sector to improvise the efficiency.

#-Link-Snipped-#Mr. Roman Domanski, the Lobby group Energy Users Association of Australia has openly supported the fact that there is no under-investment in power sector of Australia. The claims of Mr. Domanski are evident from the fact that there have been made several investments in Queensland and New South Wales as compared to that in Victoria. It should be noted that the electricity distribution networks in Victoria and New South Wales are in the hands of Public sector while the remaining states are in the monopoly of government owned public sectors. However in the present scenario, in case the Carbon tax is applied, then the worst sufferers will be Victorians.

Roman Domanski is of the opinion that electricity networks are prone to what he calls “Gold Plating” their network. The examples he states are the reported increase in capital expenditure. It is either doubled or there are bright chances for it to be doubled within the next five years. According to the distribution companies, this phenomenon is experienced due to increase in demand during peak period and this very thing calls for a change in old infrastructure like machines. However the report says that this is not a real reason to the large rise in capital expenditure.

In simple terms, the high prices which the Australians are paying are due to the in-efficiency in distribution networks at no fault of common people. There has been a 40% rise energy prices in last three years. In a slight contradiction to the report by Lobby group Energy Users Association of Australia, the Chief Executive of TRU Energy, Mr. Richard McIndoe is of the opinion that it is due to the increase in demand and the plans of Government to create new power generation facilities. The proposed carbon tax would mean an addition of 30% to the existing tariff.

Mr. McIndoe also opined that there is hesitation amongst Government imposing carbon tax. This would only lead to graver circumstances than present. Regarding the Victorians he feels the reason is simple. The energy production there is mainly based on brown coal and there is every possibility of a higher carbon tax for the residents if not always then at least for the next three years.

As in every case, there is always a way out. If the report by the Users Association is to be believed then, the conditions can be overcome. The crisis does seem to be graver but still not out of hand. It is a need of time to make corrections after finding out what has actually gone wrong.

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