This was published 12 years ago
AGL wants carbon tax fixed so cleaner energy projects can start
By Peter Ker
THE energy retailer AGL has urged the Gillard government to stick to its July 2012 start date for putting a price on carbon, despite growing pressure from the likes of BHP Billiton for a ''go slow'' approach to the controversial issue.
In a submission to the Federal Parliament's multi-party climate change committee, AGL warned the government would create significant ''sovereign risk'' if it delayed the introduction of its carbon tax.
With its exposure to LNG and renewables, AGL could benefit from the introduction of a carbon price and has long advocated in favour of one.
In a letter sent to the committee yesterday, AGL said cleaner power projects would take years to build and therefore there could be no further delay.
''It is critical that a carbon pricing framework be implemented as quickly as possible. There are already significant costs being imposed upon the community as a result of the uncertainty being created by the ongoing discussion about a carbon price and its potential start date,'' the letter said.
''Investors will not be able to proceed with new intermediate and baseload power station projects until the details of the pricing framework are finalised.''
Under the Gillard government's plan, the carbon tax will evolve over several years into a full emission trading scheme.
AGL said a trading scheme was the ideal scenario and it hoped the evolution period would be as short as possible.
Despite fears that a carbon price could dramatically force up household power bills, AGL said many of these claims were erroneous, and the impact of the price rises could be offset by the types of electricity efficiency schemes already in place in NSW, Victoria and SA.
''The impact of a carbon price is likely to be relatively immaterial relative to other price drivers over the next five years … AGL believes that energy efficiency can play a significant role in minimising any cost impacts on consumers associated with the introduction of a price on carbon,'' the submission said.
''A national approach to energy efficiency policy is likely to provide significant benefits for residential and commercial and industrial consumers of energy.''
The company also called for an end to state governments holding regulatory power over gas and electricity pricing. AGL said such powers could work as an impediment to power prices reflecting the true cost of carbon.
On Monday, the BHP Billiton chairman, Jac Nasser, called for a ''go slow'' approach to pricing carbon which would first focus solely on reforming the electricity sector, before branching into other parts of the economy.