Carbon tax saving may not mean lower rates

DESPITE the Fraser Coast Regional Council being warned about not passing on carbon tax savings, local homeowners are not likely to notice a significant change.

The Australian Competition and Consumer Commission warned the Fraser Coast Regional Council along with 20 others about passing on savings after the tax was repealed.

But when the savings from the tax are eventually passed on, Fraser Coast Mayor Gerard O'Connell said it may not mean money back in residents' pockets.

"It's not a case of striking a reduction in the rate," he said.

Cr O'Connell was reserved when asked about a potential reduction in the rate rise next year.

"It could, but you wouldn't say that at the moment, we're 11 months away from a new budget period," he said.

ACCC chairman Rod Sims said earlier this week more than 20 councils, including the Fraser Coast, had put their rates up based on carbon tax costs.

But Cr O'Connell disputed that, saying the council absorbed the carbon tax rather than specifically levying it.

"We are expecting some savings in lower fuel and electricity costs," he said.

"We didn't put a levy on the carbon tax.

"The full extent of the savings will not be known for some time."

An Ergon Energy spokesman said the company didn't discuss details of individual electricity accounts - but suggested the council could work out how much they'd save.

"Full details of tariff rates both with and without (the) carbon price are on our website," he said. "This information should enable individual customers to calculate their savings from the removal of the carbon price, if they are aware of their consumption for each tariff."

The spokesman said Ergon Energy Retail was required to charge the tariff rates set by the Queensland Competition Authority.

But Cr O'Connell said the council would have to find out their usage to work out how much they'd save.

Topics:  carbon tax fraser coast regional council rates savings

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