Carbon trade to push up utility bills

Purchasers face double-digit energy price hikes when the carbon emissions trading scheme comes starts on 1 January, according to a new report from consultancy Ernst & Young.

It concluded that gas prices could rise more than 20 per cent and electricity prices by over 15 per cent.

Coal-fired generators, one of the main producers of carbon dioxide, will have to invest heavily in scrubbers and filters to reduce their emissions, but will pass this cost on to buyers of electricity.

To offset this cost, governments will issue...

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