Coal plants capitalise on carbon price
According to analysis commissioned by Environment Victoria and conducted by Carbon + Energy Markets, coal-fired power stations are receiving billions of dollars in compensation while passing on the full value of the carbon price.
Carbon + Energy Markets compared 3rd and 4th quarter 2011 to post carbon-price 3rd and 4th quarter 2012 prices of electricity sold by Victoria’s big four carbon intensive coal fired power stations: Yallourn, Hazelwood, Loy Yang A & B. Findings of the analysis concluded that generators passed on all costs associated with the carbon pricing mechanism.
The carbon price, currently sitting at $23 a tonne of CO2, was devised as a market based disincentive to the emission of CO2 into the atmosphere. In addition to this pass-through, coal fired power stations have been given billions of dollars in free carbon permits which can be sold to other liable carbon emitters.
While conceding the pass through and free allocation of permits has occurred, Climate Change Minister Greg Combet has called the analysis superficial.