Farmers’ power costs ease
Waiting game to see exactly what the savings will be from the government
MONTO lucerne farmer Wayne Smith should have an extra $5000 in the bank this year, after the Federal Government scrapped the carbon tax a fortnight ago.
The 39-32 vote in favour of a carbon tax axing will mean a 5.1% rise in power costs from the last financial year, not 13.6% as was advised by the Queensland Competition Authority before this move.
For irrigators the tariff 66 and 65 for time of use and transitional irrigation will be hiked 10% instead of 15% from last year’s price.
“Power costs were completely out-of-control, so my word we are excited this carbon tax has gone away,” Mr Smith said.
But the savings for the average household still may not be in the realms of $550 a year as Prime Minister Tony Abbott promised when he launched the Liberal Party campaign last year.
The Climate Institute chief executive John Connor said recent figures from the Energy Supply Association of Australia suggest the savings will total between $80 and $200.
But with some farmers in the North Burnett forking out up to $28,000 a quarter for power, Mr Smith believed this development will still be much appreciated.
In the future he said he hoped the government would focus on encouraging innovation and efficiency to cut carbon wastage.
“We are implementing centre pivots on our irrigation system, which will reduce our power use by 40%,” he said.