$400m carbon bill for Stanwell
QUEENSLAND'S largest electricity generator, Stanwell Power, will be hit with a carbon tax bill of $400 million, the government-owned corporation's annual report revealed on Friday.
The power company has controlled the lion's share of the state's electricity generators since the State Government restructured the sector from July 1 last year.
Its annual report marks the first official reporting since the restructure and reveals the corporation's carbon liability will be more than $400 million in 2012-13 on current emissions estimates.
Chief executive Richard Van Breda wrote in his review of the report the carbon tax would not be covered entirely by anticipated wholesale electricity price increases.
"This will impact on our return on equity and hence the dividends we provide to our shareholders," he wrote.
But Mr Van Breda noted the company was "well prepared to operate under a carbon price", citing new systems the company had created to better understand its "real-time emissions liabilities".
The tax will hit consumers, though, with Mr Van Breda writing the company would incorporate a "carbon pass-through" in bills to retail customers and when settling electricity transactions.
Stanwell's company profits also reached just shy of $80 million after tax, a bump in its fortunes after the $12 million loss it reported in 2010-11.
The report also reiterated the oversupply of electricity in Queensland, citing that 10% of the state's total power generation was sold to New South Wales in 2011-12.
Mr Van Breda wrote the spot and contract prices for electricity remained depressed, largely driven by the oversupply, further showing the big costs consumers were paying were further up the supply chain.