CONSUMERS face possible blackouts and power stations could go broke unless the Rudd Government offers an extra $6billion worth of free permits under its planned emissions trading scheme, the energy sector has warned.
If the extra assistance is not forthcoming, the sector, responsible for about 70 per cent of Australia's carbon emissions, will ask the Government for a Rudd Bank-style financing facility to help raise the capital.
A survey by the Energy Supply Association of Australia has found the sector will need to find $100 billion over the next five years for refinancing, essential upgrades and new investments in low-emission generation to comply with the emissions trading scheme and new renewable energy targets.
The industry says it is facing a "perfect storm" of a credit squeeze caused by the financial crisis and the Rudd Government's bank guarantee, inadequate compensation under the carbon pollution reduction scheme, and a decision by the Australian Energy Regulator that could reduce the profitability of energy network providers.
http://www.theaustralian.news.com.au/story/0,25197,25330984-11949,00.html
