Transitional Electricity Cost Assistance Program
Why do we need a Transitional Electricity Cost Assistance Program?
The Government is developing the Transitional Electricity Cost Assistance Program (TECAP) to help smooth the impact on manufacturing and mining businesses of CPRS-related increases in electricity prices.
How does the Transitional Electricity Cost Assistance Program work?
The TECAP will apply after the fixed-price transitional year (2011-12) and will be capped at $1.1 billion, distributed over two years as follows:
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up to 50 per cent of the projected increase in CPRS-related retail electricity prices in 2012-13; and
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the size of the second year payout will depend on available funds, but will be capped at 25 per cent of the projected increase in CPRS-related retail electricity prices in 2013-14 (the rate will be determined based on actual data on the take-up of the program for that year and remaining funds).
Who does the Transitional Electricity Cost Assistance Program assist?
Assistance will be provided to manufacturing and mining corporations with facilities that use more than 300 megawatt hours of electricity per year.
Assistance will not be provided in respect of facilities that are eligible for assistance under the Emissions-Intensive Trade-Exposed Assistance Program, the Electricity Sector Adjustment Scheme or the Coal Sector Adjustment Scheme.
Businesses wishing to explore their potential for eligibility under the program should direct their enquiries to the Household and Industry Assistance Branch at EITE@climatechange.gov.au.