$180m for power price compo

About $180 million is likely to flow to households through compensation payments for power price rises under the Government's emissions trading scheme, Climate Change Minister David Parker says.

NZ First gained the one-off rebate on power bills for 2010 – when electricity comes under the scheme – as well as a targeted cash payment for pensioners, beneficiaries and others on low incomes, in return for its support for the scheme's legislation.

Mr Parker said last week that the amount of the payouts would depend on how much power prices rose.

His spokeswoman said yesterday that the best current estimate of the size of the package was $180 million, based on a price of $25 per tonne of carbon. That breaks down to an estimated extra $10 a month on an average household's power bill under the ETS. However, not all households will receive that much compensation, with the package split between the universal and targeted payments.

Decisions on how much will go to each have not yet been made.

The final size of the compensation package, to be paid for with extra profits generated by state-owned power companies, would be based on an estimate closer to the time of the payment in "early 2010", she said.

Prime Minister Helen Clark said yesterday that the funds for the package would probably be determined in the next Budget round.

In negotiations, the Greens secured a $1 billion allocation for home insulation retro-fitting. That package, to run over 15 years, will also be funded by future Budgets.

The Climate Change (Emissions Trading and Renewable Preference Bill) is expected to become law this week.

- NZPA