Australia electricity prices jump on carbon scheme

SYDNEY Thu Feb 24, 2011 1:52am GMT

SYDNEY (Reuters) - Australian electricity prices jumped almost 10 percent on Thursday after the government announced a revised plan to make polluters pay for their carbon emissions from 2012.

The electricity futures contract for calendar 2012 for the mining state of Queensland was up A$3.32 at A$40.50 per megawatt, after the government said it would begin with a fixed-price carbon scheme from mid-2012.

Australia relies for coal-fired power for 80 percent of its electricity generation.

(Reporting by Mark Bendeich; Editing by Ed Davies)