Emission trading a big boost for Hydro

proposed greenhouse gas trading scheme would deliver up to a whopping $5.4 billion in additional profits to Hydro between 2010 and 2030 if it goes ahead. Tasmania's heavy investment in renewable energy and 95 per cent reliance on power generated by water and wind would prompt a flood of cash into the State's coffers as national power prices increased.The startling figures were revealed in a report by McLennan Magasanik Associates to investigate the impact of the planned National Emissions Trading Scheme.In the best case scenario, modelling shows the State's renewable generators would earn an extra $4.35 billion and natural gas generators an extra $1.06 billion.A more conservative scenario still positions the State to get a $3.67 billion boost.The scheme, backed by all states and territories, uses a cap and trade system where companies buy permits for their greenhouse gas emissions and can trade their permits for money.Similar systems already operate in Europe and the US.Acting Premier David Llewellyn indicated on Wednesday that much of this expected surplus would be channelled back into compensation for users and industry reeling from higher power prices."(The scheme) must allow our major industries to be protected from any unfair competition from overseas countries that are not factoring in the cost of carbon," he said."We are not going to allow the export of jobs overseas."He also flagged protection for users from a possible $150 a year power bill hike.A rebate may be offered to help households cope with the predicted $1.06 to $3 a week rise.Other states would pay dearly for their reliance on coal-fired power stations.Victoria would be $10-11 billion dollars worse off and NSW would take a $8-9 billion hit as their black coal generators dealt with the burden of emissions costs.The State Government is seeking responses to the plan. A discussion paper is available at www.emissions trading. net.au and responses must be received by December 22 to emissionstrading@ dpac.tas.gov.au