The launch of a new renewable energy offering to coincide with Earth Hour this weekend has been accompanied by a warning to the federal government that its actions on climate change must not cripple businesses and households with unaffordable energy bills.
Momentum Energy, which wants to provide renewable energy from its parent company, Hydro Tasmania, to its largely business customers, said small and medium enterprises were vulnerable to cost pressures.
Momentum’s chief executive, Camillo D’Alessandro, said the government would need to provide adequate compensation from the proceeds of its carbon tax so households and businesses were able to meet rising energy costs.
”Momentum supports the introduction of a carbon price on the condition that compensation is provided to households and businesses,” Mr D’Alessandro said.
”A carbon price will raise the cost of emissions intensive goods and services including electricity. As a result an important aspect of a well designed carbon price is that revenue raised through the sale of emissions permits be used to compensate households and businesses for increased costs. This is particularly important in the initial stages of carbon pricing.”
Hydro Tasmania paid $17.1 million for 51 per cent of Momentum in August 2008 before buying the rest of the company in September 2009.
