Don't let coal-fired powerstations off the hook

摘要

Assistance should not be given to coal-fired electricity powerstations when the federal government's proposed Carbon Pollution Reduction Scheme (CPRS) is introduced in 2010. In its submission to the federal government's green paper on the scheme, Engineers Australia questioned whether electricity generators should fall under the category of Strongly Affected Industries. This category describes entities which are heavy emitters and, among other things, are unable to fully pass on their carbon costs by increasing prices. Under the scheme proposed by the green paper, these entities would be entitled to financial assistance. "However, the green paper also acknowledges that the demand for electricity is relatively inelastic," said the submission, meaning consumers will pay whatever price is needed for electricity. This suggests increased generation costs could be passed on to the consumer and that coal-fired powerstations should not be classified as a strongly affected industry.