Govt electricity promise a fantasy: ALP A business group has cast doubt over an anticipated drop in electricity prices following the carbon tax repeal. In a submission to the Carbon Tax Repeal Taskforce, the Australian Industry Group (Ai Group) says any downward shift in electricity prices is likely to take some time, saying other factors have contributed to recent rises in the utility cost. "The proportionate impact of removing carbon costs will likely not match the impact of their introduction," the Ai Group submission says. Opposition climate change spokesman Mark Butler says the Ai Group submission confirms Labor's long-held belief that a shift to Prime Minister Tony Abbott's "direct action" climate change policy would in fact cost more money. "Although the legislation hasn't even been introduced into the parliament, very serious doubts are already being cast by electricity companies and many other businesses about Tony Abbott's reckless promise that he'd be able to cut power bills for millions of households," Mr Butler told ABC radio on Wednesday. The coalition has said the average Australian household will save some $550 a year on electricity costs after the carbon tax is scrapped and that Australia's consumer watchdog would monitor and enforce the changes. But Mr Butler says Mr Abbott's promise is a fantasy. "His direct action policy will cost households more not less and it simply won't be effective in cutting carbon pollution," he said. Head of the Ai Group, Innes Willox, said the business sector broadly supports scrapping the carbon tax, but added the impost has become embedded in Australia's economic system and will take some time to "wash through." By the time it gets repealed it will have been in place for two years. That's not an easy thing to wind up," he told ABC radio. Mr Willox said businesses have absorbed some 70 per cent of the additional costs faced under the carbon tax regime and that consumers should not expect "automatic adjustments" once the duty is lifted. The Australian Competition and Consumer Commission, charged with monitoring electricity prices, should not be "too heavy handed" with business as it adjusts to operating without the carbon tax. Changes to consumer prices will differ depending on factors including location and the means of electricity delivery, Mr Willox added We believe there will be some significant savings over time ... but not immediately.