COAG Approves Carbon Cost Pass-Through

In Darwin yesterday, the Council of Australian Governments (COAG) signed the revised Australian Energy Market Agreement which allows carbon cost pass-through for CPRS and RET to regulated users.

The communiqué says:

“…where retail prices are regulated, energy costs associated with the Carbon Pollution Reduction Scheme and the Renewable Energy Target shall be passed through to end-use consumers. These price increases, together with more cost-reflective retail prices, including the phase-out of retail price caps where competition is found to be effective, will help drive more efficient use of energy and assist in managing peak energy demand growth.”