Opposition Leader Tony Abbott says he wants to scotch the 'myth' that the Gillard government is interested in bringing power prices down.
But Opposition Leader Tony Abbott insists Labor is never happier than when power bills are rising.
A draft Productivity Commission report released on Thursday says surging electricity prices in the last five years have been caused by 'spiralling' investment in wires and poles.
Climate Change Minister Greg Combet noted the report confirms the carbon price will make up less than eight per cent of NSW household electricity bills in 2012/13.
'On the commission's figures this amounts to $3.20 a week and the Gillard government is providing households with $10.10 a week on average in assistance through tax cuts, higher family payments and increases in pensions, benefits and allowances,' Mr Combet said in a statement.
In contrast, commission analysis showed network charges made up half of NSW power bills and they had risen 130 per cent since 2007/08, the minister said.
But Mr Abbott was quick to dismiss the government's reading of the report.
'I want to scotch this myth that the Gillard government is interested in getting power prices down,' he told reporters in Melbourne.
'The whole point of the carbon tax is to put prices up. Every time your power bill goes up the prime minister has a smile on her face because that's the carbon tax doing its job.'
Mr Combet on Thursday also seized on Australian Energy Market Operator figures showing the emissions intensity of the generation sector was declining.
'In the first three months of the carbon price electricity generated for the national electricity market emitted 0.85 tonnes of carbon pollution for each megawatt hour - a 7.6 per cent decline in emissions intensity compared to 2011/12,' the Labor frontbencher said.
The amount of carbon pollution released in the September quarter was 2.4 million tonnes lower than it would have been if emissions intensity had remained at the previous level of 0.92 tonnes per megawatt hour.
But Mr Abbott said there was a simple explanation for that and it had nothing to do with the government's 'toxic tax'.
He pointed to a major flood that knocked out capacity at Yallourn power station in early June.
'The reduction in generation in Victoria is mostly the result of flooding which has taken a large percentage of the brown-coal generating capacity out of action over the last couple of months,' the Liberal leader said, adding Labor couldn't claim credit for that.
Opposition climate action spokesman Greg Hunt said the flood in early June caused a swift drop in production and the figures showed an increase in generation after July 1 'as generation ... progressively came back into production at Yallourn'.
'This is not just misrepresentation from the Government, it is transparent, absurd and just a little embarrassing,' Mr Hunt said in a statement.
Mr Abbott further argued the fact generation was declining was a sign of weakness in the economy, not successful government policies.
