$120 per year rebates will do little to help compensate households for the cost of the ETS.
The facts which NZ First and the Greens don't understand or don't want to know:
1) The decision to block hot air AAUs has roughly doubled the price of carbon in the scheme from $20-$25 to $40-$50 (Radio NZ Morning Report http://www.radionz.co.nz/audio/national/mnr/2008/09/02/emmisions_trading_scheme_bill_debate ) .
2) The Government’s own numbers (from the explanatory note to the Bill) show the impacts on households (when fully implemented – now 2011) to be:
$100-$200 p.a. at C-Price of $15 / tCO2e
$170-$350 p.a. at C-Price of $25 / tCO2e
$330-$660 p.a. at C-Price of $50 / tCO2e
3) So at the Minister’s spokesperson’s C-price basis of $25 / tCO2e, the “good news of an electricity $120 rebate in 2010” is little comfort for the real cost in the years that follow!
The real costs will be 3-6 times that on an ongoing basis!
