Axed tax could cut power hikes: Abbott

Electricity price hikes in NSW could be halved if the federal government abolished the carbon tax, Opposition Leader Tony Abbott says.

NSW power bills will rise by an average of 18.1 per cent from July 1.

The regulator has blamed rising network costs and the cost of compliance with federal and state government “green schemes”, including carbon pricing.

Mr Abbott says half of the price increase is a result of the carbon tax.

“If (Prime Minister) Julia Gillard wanted to take the pressure off Australian families, if she wanted to make it easier for Australian families to meet their bills, she could cut those increases in half by abolishing the carbon tax,” Mr Abbott told reporters in Adelaide.

He said federal government compensation for rising prices offered by the federal government would not cover future increases in the carbon tax.

“The compensation is for today, the carbon tax is forever, as far as this government is concerned,” Mr Abbott said.

“The carbon tax will go up and up and up over time, but the so-called compensation will just stay where it is.”

Opposition frontbencher Christopher Pyne said electricity prices in Adelaide had also increased by 18 per cent over the past year and after the introduction of the carbon tax in July, the city would have the highest electricity prices in the world.

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