The nation’s consumer watchdog has revealed that the carbon tax repeal has resulted in less savings for consumers than promised.
Prime Minister Tony Abbott promised a nine per cent drop in electricity prices and a seven per cent reduction in natural gas prices by scrapping the carbon tax.
However, figures released by the The Australian Competition and Consumer Commission show that was an ambitious promise, with actual electricity savings averaging 7.31 per cent.
Natural gas prices have dropped 4.8 per cent.
The repeal of the impost has not put as much downward pressure on energy prices as hoped.
The figures, which show isolated carbon tax repeal savings from July to October 2014, lie within the ACCC’s predictions of between 5.2 per cent and 9.7 per cent.
Small Business Minister Bruce Billson says the figures are also in line with government expectations.
“There is no doubt our commitment to remove the carbon tax cost from small business and household bills saved Australians money across all states and territories,” he said on Thursday.
Electricity prices fell by 5.1 per cent in the first quarter following the repeal of the carbon tax – the sharpest drop on record – but remained steady the following quarter.
The ACCC, which promised to be “extremely tough” on companies that did not pass on savings, says most electricity retailers have complied.
However, the watchdog is still closely monitoring other companies, particularly in the landfill and construction industries.
It’s also still assessing claims by Australian’s airlines that while they created a carbon surcharge, it was not passed on to customers.
Average carbon tax repeal savings (July-Oct 2014)
– ACT 10.6 per cent
– Qld 8.3 per cent
– WA 8.1 per cent
– Vic 7.7 per cent
– NSW 6.9 per cent
– NT 5.1 per cent
– SA 4.5 per cent