Clean Energy Future Scheme
The Clean Energy Future Scheme, commonly known as the Carbon Tax, is a scheme introduced by the Australian Government to place a cost on greenhouse gas emissions. The scheme will affect electricity prices as a very large proportion of electricity in Australia comes from power generation that has significant greenhouse gas emissions. The scheme puts a price on carbon pollution, creating a powerful incentive for all businesses to cut their pollution by investing in clean technology or finding more efficient ways of operating.
After 30 June 2015, the fixed carbon price will be replaced by an Emissions Trading Scheme (ETS), with a floating price determined by market value.
Click here for an Australian Government information sheet regarding carbon pricing and how it can help with your bills.
How does this affect me as a Momentum Customer?
If you are not a SmilePower customer or purchasing your electricity through some form of carbon price inclusive product, your electricity price will increase on 1 July 2012, in line with the terms agreed in your contract. This increase will reflect the impact of the carbon scheme on electricity generation across the National Electricity Market.
Will I be able to see the impact of the carbon charge on my invoice?
Momentum has made the decision to list the charge as a separate line item on our invoices. We hope this gives our customers increased visibility as we feel this is fairer than hiding the charge in the base rate.
How are we planning to calculate this?
The carbon charge on your bill will be calculated in accordance with our contract with you. This calculation takes your metered consumption and delivery losses and charges the carbon price, which is set at $23/tonne for the first year, $24.15/tonne in the second year and $25.4/tonne in the third year of the scheme, multiplied by the emissions intensity factor for electricity in the NEM. The emissions intensity factor is a calculation, by the Australian Energy Market Operator, of the average amount of carbon emitted across the NEM and will vary depending on which generators are dispatched from time to time.
Momentum is a clean energy provider - why is there carbon on my bill?
Momentum has some clean energy products, namely SmilePower. Our other products will have a carbon charge on the bill. All electricity sold in the NEM is from pooled sources, which include carbon emitting generators.
Why has my concession amount changed?
The Victorian Government has changed the amount of concession that customers are entitled to, due to the introduction of the Australian Government’s ‘Household Assistance Package’. The package provides eligible recipients with a lump sum payment directly into their bank account. Please visit http://www.dhs.vic.gov.au/concessions for more information.
My invoice is from May to August, will the carbon charge be applied to the entire invoice?
No, any carbon charge will only apply to the portion after July 1 2012. Any usage prior to this time will not have the charge applied.