Climate Change Authority tells government to adopt emissions intensity trading scheme

Advice from CCA and Energy Market Commission says policy uncertainty leaves wholesale electricity overpriced by up to $40 per megawatt hour

The government has been told wholesale electricity prices are above long-run costs by around $27 to $40 per megawatt hour because of policy uncertainty triggered by years of destructive political in-fighting about carbon pricing.

The advice comes in a new report by the Climate Change Authority and the Australian Energy Market Commission, released on Friday, before next week's Finkel review of the national electricity market.