Business energy customers could be paying an extra ten to 15 per cent on their cheap energy bills by the end of the decade as a result of the carbon floor price plans.
This is the view of Jeremy Nicholson, director of the Energy Intensive Users Group, who explained that the levy, on top of other taxes and the cost of the emissions trading scheme, could result in a "very significant" accumulative cost for companies by 2020.
"If we find ourselves out of line with our European partners and increasingly out of line with manufacturing in America, Eastern Europe, Asia and so on, this does not bode well for long term capital intensive businesses, like manufacturing in this part of the world," he argued.
However, the lobby group said it does not object to the long-term objective of reducing carbon emissions, although Mr Nicholson warned the carbon floor price is "like lowering water on one side of the bath and not the other".
"You simply impose costs on one part of the earth and your trade [is] exposed globally," he added.
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