The federal opposition has seized on a report that suggests Australians face some of the highest electricity prices in the world to further its attack on Labor's carbon tax.
Carbon Market Economics analysis suggests that domestic electricity prices have risen by 40 per cent since 2007 and will jump another 30 per cent by 2013/14.
The report, released today, was commissioned by The Energy Users Association of Australia, whose members include BHP Billiton, Rio Tinto, BlueScope Steel, Westfield, Coles, Woolworths and Harvey Norman.
It finds people living in South Australia, NSW, Victoria and Western Australia pay more for electricity than most of the developed world, with the exception of Denmark and Germany.
Opposition climate action spokesman Greg Hunt says the report proves prices are already skyrocketing and families can't afford to be slugged with the federal government's carbon tax.
"Right now this is the worst possible tax, at the worst possible time, in the worst possible country," Mr Hunt told reporters in Canberra.
"The prime minister should apologise to Australian families for pouring fuel on the fire of electricity prices."
The federal Treasury estimates Labor's carbon tax will add about 10 per cent to electricity prices in 2012/13.
Overall, households are expected to experience a cost increase of $9.90 a week after the tax starts on July 1. But they will receive, on average, $10.10 a week in assistance.
The compensation will be delivered in the form of tax cuts and increased welfare payments.
But opposition energy spokesman Ian Macfarlane disputes those figures.
"Not all households will be compensated and the accuracy of the compensation is yet to be defined," Mr Macfarlane told reporters.
"The reality is Australia already has the highest electricity prices in the world. We're about to have the highest carbon tax in the world, and that's more pain for households."
Labor's former climate change adviser Ross Garnaut argued last year that increased power bills were largely due to a massive overinvestment in poles and wires.
He said distribution companies were effectively price-gouging consumers by gold-plating infrastructure.
Prof Garnaut said the impact of a carbon tax would be small by comparison and called for an independent review of the regulatory regime.
Comment was being sought from Climate Change Minister Greg Combet.
