Carbon Pricing FAQ

Summary

  • The Federal Government will be introducing the Carbon Pricing Mechanism on 1 July 2012.
  • The Carbon Pricing Mechanism results in us incurring carbon costs as a result of the sale of electricity to you. Some of our carbon costs relate to our direct liability under the Carbon Pricing Mechanism, while we incur or will incur other carbon costs:
    • from the companies from which we purchase the electricity we on-sell to you;
    • from the companies that are responsible for transporting the electricity we purchase and supply to you; and
    • as a result of the impact of the Carbon Pricing Mechanism.
  • Our prices will increase to address the impact of the Carbon Pricing Mechanism but we have also increased our prices to address other unrelated increased operating costs.
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What is the Carbon Pricing Mechanism?

  • The Carbon Pricing Mechanism has been developed by the Federal Government. It makes large businesses that emit large amounts of particular emissions financially responsible for those emissions.
  • The details are set out in the Clean Energy Act 2011.
  • Full details regarding this can be found at www.cleanenergyfuture.com.au
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What is the Clean Energy Future?

  • Clean Energy Future legislative package is a collection of laws that the Federal Government has initiated, which include the Carbon Pricing Mechanism but also include household assistance packages and support for the renewable energy sector and agriculture.
  • Full details of the initiative can be found at www.cleanenergyfuture.com.au
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What are your carbon costs?

  • The Carbon Pricing Mechanism results in us incurring carbon costs as a result of the sale of electricity to you. Some of our carbon costs relate to our direct liability under the Carbon Pricing Mechanism, while we incur or will incur other carbon costs:
    • from the companies from which we purchase the electricity we on-sell to you;
    • from the companies that are responsible for transporting the electricity we purchase and supply to you; and
    • as a result of the impact of the Carbon Pricing Mechanism.
  • Our prices will increase to address the impact of the Carbon Pricing Mechanism but we have also increased our prices to address other unrelated increased operating costs.
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Why does Neighbourhood Energy have to pass on the costs of carbon?

  • Neighbourhood Energy will incur an increase in its costs as a direct result of the Federal Government's carbon price.
  • Neighbourhood Energy's carbon costs are outside of its control.
  • Neighbourhood Energy can not afford to absorb these costs.
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Will my future price changes always include carbon pricing?

  • Neighbourhood Energy's prices will always be all inclusive and will include carbon costs.
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