Savings accounts may take hit through ETS

Households’ savings accounts may be set to take a hit following the establishment of the Emissions Trading Scheme (ETS).

The initiative, proposed by prime minister Kevin Rudd, could potentially increase family bills by $1,100 every year, according to the Daily Telegraph.

By 2012, the news provider estimated – using the government’s own modelling – that the ETS will increase electricity costs by 20 per cent.

Taking this into account alongside industry predictions of a five per cent rise in food prices, this could see people struggling as the initiative takes off, which could lead people to look for cheap credit cards to help family finances.

However, chief executive officer of price comparison site GoSwitch Ben Freund explained that the government wants households to shift from cheaper sources of energy to their more expensive counterparts, such as solar and wind energy.

"How do you make people do that? By making the expensive sources of energy more compelling. And you do that by making the cheaper sources of energy more expensive," he remarked.

Local MPs and the Energy and Water Ombudsman recently reported an increase in complaints following 22 per cent hike in electricity prices, according to the Sunday Telegraph.

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