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The Government is expecting to spend $180 million compensating people when power bills go up as a result of the new emissions trading scheme, but the finer details of who gets what have not yet been decided.
The emissions trading scheme is the cornerstone of the Beehive's big
climate change push and it is set to pass into law early next week after months of heated debate.
Though details of the final changes agreed to by Labour, the Greens and New Zealand First were being tabled only last night, Climate Change Minister David Parker said everything was on track for the next stages of debate which begin this afternoon.
Among the agreements is a one-off plan to compensate householders for the expected 5 to 10 per cent increase in their power bills that will occur from the inclusion of the electricity sector in the scheme in 2010.
The payments will be made for only one year - 2010 - and they are designed to help people get through the transition.
Mr Parker said it is intended that the amount of compensation will be equivalent to the total increased cost to residential power consumers from the scheme.
The best estimate at the moment of what that will be is a total of $180 million - which works out at an average of $112.50 a household in 2010, based on there being 1.6 million households.
But Mr Parker is avoiding being pinned down on how much money householders can expect to get, saying only that it will vary according to income and the minimum amount "won't be derisory".
"It'll be split between a one-off electricity rebate to all households to assist with higher prices, and a one-off cash payment to families who are in receipt of things like benefits, superannuation or Working For Families," he said. "It won't be equal to every household."
People who receive benefits, Working For Families or superannuation will probably get money automatically added to their payments, while all power customers will get some kind of rebate likely to be added as a credit to their bill.
Prime Minister Helen Clark said yesterday the final cost of the compensation was likely to be decided in the course of the next Budget round.
Parliament will debate the scheme's committee stage today.
