Carbon pass-through in the supply chain

On 1 July 2012, Australia put a price on carbon through the Federal Government’s Clean Energy Legislation (CEL) package.

While only some 350 entities have direct liabilities under the carbon price, all Australian businesses are affected to some degree by carbon pass-through costs in their supply chains. It is incumbent upon businesses to understand what the carbon price impacts are, and how they intend to address these impacts. Net Balance provides a range of services to help businesses to adjust to the carbon price, including:

• determining the effect that the carbon price will have on your own prices, and whether you can pass these costs through to customers (in line with ACCC requirements)
• assessing the legitimacy of pass-through costs from your suppliers, and assisting with related negotiations with suppliers
• identifying and modelling likely future energy cost increases
• identifying energy efficiency opportunities to reduce energy costs, and establish business cases for investment.
• reviewing and verifying internal carbon price models

Net Balance’s team has a complete understanding of the Clean Energy Future package, and a proven track record in helping our clients to understand the dynamic carbon space and to develop strategies to minimise their exposure and maximise the opportunities.