The Clean Energy Legislation (Carbon Tax Repeal) Act 2014 (Cth) (Carbon Tax Repeal Act), which removes the carbon price, was passed by the Commonwealth Parliament on 17 July 2014. The Carbon Tax Repeal Act requires retailers to pass on to customers all cost savings resulting from the repeal of the carbon tax.
On 18 June 2014, the Commission released the ‘Variations to Standing Offer Tariffs Following the Removal of the Carbon Price – Position Paper’ . The Commission invited submissions from stakeholders on its preferred option, which was to allow retailers to vary their standing offer tariffs one additional time to introduce a carbon price-exclusive standing offer tariff without invoking enforcement action from the Commission for potential breaches of the EIA and GIA.
The Commission considered all submissions, and released the ‘Variations to Standing Offer Tariffs Following the Removal of the Carbon Price – Final Decision Paper’. The Commission also released a compliance statement outlining the procedures a retailer must follow if it decided to utilise the additional variation to introduce a carbon price-exclusive standing offer tariff.