Real reason for huge electricity price rises

I remember in the last state election here in New South Wales, coming home from work one day and noticed an election flyer on the footpath at the bus stop. Picked it up and it said something like "Vote no to the carbon tax, vote Liberal" bla.... I thought to myself, WTF? The carbon tax is a federal issue for a start so WTF would a state gov do about it? On top of that it was blaming the huge price rises in electricity at the time (nearly bloody 20% in one single year in some cases) fairly and squarely on the carbon tax. This was when Abbott was in opposition and was blaming the carbon tax for everything that ever happened to anyone in Australia, so the lies were flying aplenty from Lieberals aplenty that the carbon tax was causing these increases. It was one of the biggest lies of the Abbott 3yr opposition. Needless to say I thought it was appalling that such a lie counld be extended to a state election campaign.

The real reason for the electricity price rises got drowned out in the Abbott hysteria that the world would end as we know it if the carbon tax happened (it didn't). As explained in the video report below from when Gillard was in power, it was because of a demented system that encouraged building infrastructure in some weirded out deal with the state gov.

This brings up some awkward questions then for Abbott's new grand budget plan. Will the electricity prices go down by 20% or so with the removal of the carbon tax? As he said they went up 20% or so because of it? Of course we all know the answer to that one.

While I'm on the subject, one of the things that the implementing of the carbon tax did, was to raise the tax free threshold (the amount you could earn before having to pay any income tax) from about $6,000 a yr to about $18,000 a year. The carbon tax is now in place and making up the gov revenue for that tax cut for the poor. Now, how is Abbott going to make up that tax cut for the poor if he cans the carbon tax? Where will he get the money?