The carbon tax myth examined

One bright note of this election, perhaps the only, was the development of fact checking organisations, one of which is run by theconversation.com.

The site examines the interesting question: ‘will scrapping the carbon price lower electricity prices?’ According to author Dylan McConnell from Melbourne University’s Energy Institute, removing the carbon tax would result in a reduction in electric- ity prices of ‘around five per cent, with an upper boundary of about 10 per cent.’ But he points to an example from Victoria
in recent years, where transmission costs went up 27 per cent, distribution by 11 per cent and retail costs by 17 per cent.

‘These components are independent of the carbon price, and account for the majority of hikes in retail electricity prices.

‘It’s worth remembering too that even without the carbon price, electricity prices are predicted to rise. Climate Change Authority research suggests that without the carbon price, the rise would with be slightly smaller, with retail electricity prices just six per cent lower.’

Additionally, ABC TV’s Australian Story recently ran a great yarn entitled ‘Corridors Of Power’ which exposed ‘gold plating’ by the NSW government owned electricity transmission company, TransGrid. Gold plating is building unnecessary projects and in this case, 330,000 volt electric power lines were earmarked for the Manning Valley in NSW as part of a large-scale state expansion.

In response to the plans, Manning Valley farmer Bruce Rob- ertson helped create the Manning Alliance and sparked a senate inquiry which backed his claims of gold plating. People power overcame corporate interests and the project was abandoned.

‘[Gold plating] was the single largest cause of the electricity price rises that consumers had experienced in Australia,’ says Robertson.

What other half truths are being presented as fact?

Hopefully in coming years, fact checking organisations will develop further and investigative journalism will continue to prevent truth being the first casualty of politics. 


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Below is a reply from TransGrid PR regarding the editorial on September 3, 2013. 

My reply: 

You claim it's 'investment' whereas Mr Robertson says it's 'gold plating'. The implication that all investment should be welcomed without scrutiny is of course your right to promote as a corporation.

And while the rest of this letter goes to say what good things TransGrid is doing, my understanding is that most of those things have only come about from the senate inquiry the residents of Manning Valley pushed for. Unless I missed something, you have not refuted the claims from Mr Robertson. 

Perhaps instead the letter should say, 'With thanks to the Manning Valley Alliance and the senate inquiry, TransGrid reviewed its TOR, stakeholder and consumer engagement and has sought to become more transparent in the future.'