The modelling found electricity prices would not be reduced and could rise slightly if the RET were reduced – by 15 per cent wholesale and 2. 5 per cent retail on average in the period to 2030. “This is consistent with modelling commissioned by the government and studies conducted independently,” the report said. “For a household consuming 6. 5 MWh of electricity annually (NSW average), reducing the RET would add about $35 to the annual power bill, with most of this increase taking place after 2020.
Reducing the target would mean 150 million extra tonnes of carbon pollution by 2030, and 240 million tonnes by 2040. “Higher levels of pollution lead to socialised costs we estimate conservatively to be $14 billion.
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