Watchdog monitors carbon tax effects

The consumer watchdog has begun gathering information to help it monitor price movements when the carbon tax is abolished.

The Abbott government is hopeful it can secure six crossbench votes to abolish the carbon and mining taxes in a special sitting of the Senate starting on July 7.

Prime Minister Tony Abbott says the abolition of the tax should cut the price of gas and electricity and save the average household around $550 a year.

Australian Competition and Consumer Commission acting chairman Michael Schaper says the agency is monitoring prices, costs and profits to assess the general effect of the carbon tax scheme.

The agency's focus will be on suppliers of natural gas, electricity and synthetic greenhouse gases and other "liable entities" who have been paying the tax.

"The ACCC is gathering information that will provide a benchmark to allow it to compare prices charged to consumers both before and after the carbon tax is removed," Dr Schaper said in a statement on Tuesday.