ELECTRICITY prices are set to almost double, regardless of the election campaign and the sale of power assets.

An Australian Industry Group study released today finds the annual bill for a typical Sydney household will climb from $1257 to $2012 between 2009-10 and 2012-13 if the carbon price is set at $26 per tonne. Even with no carbon price, the bill is set to climb to $1705.

''A range of factors points relentlessly upward, from massive network investment to movements in international markets to the increasing role mandated for higher-cost renewable energy,'' the group's chief executive, Heather Ridout, says in an introduction to the report. ''The NSW privatisation debate is unlikely to change this much.''

The study finds coal-fired generation will become more expensive whether or not Australia gets a carbon price as international prices for Australian coal climb. Paradoxically, weak international climate change policies could push Australian coal prices still higher.

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Gas prices are also set to climb, with four large LNG export projects in Queensland set to drive eastern states prices towards world parity.

Peter Martin