http://www.abc.net.au/news/2012-08-09/abbott-says-electricity-price-rise-reason-a-furphy/4187906
Discuss[h=1]Abbott ignoring energy regulator 'to scare community'[/h]Updated August 09, 2012 14:06:01
PHOTO: Tony Abbott says the carbon tax will increase power bills and put pressure on household budgets.(Dean Lewins: AAP)
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MAP: Australia
Opposition Leader Tony Abbott has been accused of ignoring facts for political gain after describing the energy regulator's position on what is driving power prices as a "furphy".
Prime Minister Julia Gillard has threatened to take action against the states unless they bring down electricity prices.
She says households have experienced 50 per cent price increases over the last four years, "linked to demonstrable inefficiencies in resource allocation in the market".
Ms Gillard received the backing of Australian Energy Regulator chairman Andrew Reeves, who agreed over-investment had pushed up prices.
"The price increases up to 1 July this year were substantially attributable to increasing costs of the network," Mr Reeves said.
Earlier this week, Opposition energy spokesman Ian Macfarlane admitted the states had been price gouging.
[h=2]'Absolute furphy'[/h]However, speaking to the ABC Radio's AM program this morning, Mr Abbott again blamed the carbon tax for putting pressure on power bills.
"The problem is not the regulation of power prices. The problem is the carbon tax putting up power prices," he said.
"This is a fabrication by the Prime Minister. This is an absolute furphy from the Prime Minister.
"Why should we believe the Prime Minister now about so-called gold plating of power infrastructure when she's never talked about it for the last five years?"
Mr Abbott defended investment in electricity infrastructure.
"It's very important that we have security of energy supply and I don't think any rational power supplier would be overdoing it," he said.
"They would be putting in as much investment as is needed to ensure that they properly do their job."
[h=2]'Scaring the community'[/h]Greens leader Christine Milne says Mr Abbott is the one making things up and is ignoring facts for political gain.
"The pendulum of credibility has swung to the red flashing emergency zone pointing straight at Tony Abbott," she said.
Senator Milne says Mr Abbott's tactics have been exposed.
"He doesn't care. He doesn't want to be across the detail. All he wants to do is try to get into power by scaring the community," she said.
Climate Change Minister Greg Combet agrees Mr Abbott is being deceitful.
KMs Gillard says the rises cannot continue and has challenged the states to come up with ways of reducing power prices, or else.
"We won't lightly use the big stick of regulation, of stronger powers for the Energy Regulator and the ACCC, but it's a stick we hold and which we'll use if required," she said.
Topics: government-and-politics, federal-government, industry, electricity-energy-and-utilities, australia
First posted August 09, 2012 13:22:31:3- daday a harhiztijjjits
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