Envestra Limited (ASX:ENV) says it does not believe the carbon tax will have a material impact on its business, where there is a direct cost.
The natural gas distribution company says this is on the basis that the company would be entitled to pass through any additional costs.
Envestra’s position is supported by the Australian Energy Regulator. After reviewing Envestra’s South Australian and Queensland gas Access Arrangements, the regular indicated the proposed carbon tax will most likely qualify as a “tax change event”.
This will enable Envestra to recover the additional costs through its network charges.
In the first six months of the 2011 financial year, Envestra generated a net profit of $35 million.
