Families could cover the cost of the carbon tax impact on their power bills by saving electricity around the house, energy experts say.
Treasury modelling suggests the carbon tax will push up living costs for an average household by $9.90 a week, adding 0.7 per cent to the Consumer Price Index.
Petrol has been excluded from the carbon tax while grocery bills are forecast to increase by about 80¢ a week.
But Coles and Woolworths have ruled out immediately increasing shelf prices and have indicated they will push back against suppliers that try to raise prices.
The tax's biggest impact will be on power prices. It will add $134 to the average annual electricity bill in Perth and the South West. Overall, bills will rise $183 a year.
The 9 per cent increase attributed to the carbon tax is less than what Federal Treasury modelled. It had estimated electricity bills would rise $3.30 a week as a result of the carbon tax.
Martin Anda, the head of Murdoch University's environmental engineering program, said it was possible to slash 10 to 20 per cent off power bills just by changing behaviour.
Power saving tips include switching off electronic appliances at the wall instead of keeping them on in standby mode, turning off lights when not in a room, turning off second fridges and cutting the number of hours pool and pond pumps run.
Even bigger savings can be achieved by swapping halogen downlights with compact fluorescent lamps or LED ones, installing solar panels and solar hot water systems and retrofitting houses with eaves, which all help pay for themselves in the long run.
"The things we can do to save energy is endless," Dr Anda said. "We waste so much energy in our homes."
Western Power's Andrew Blaver said about half of electricity bills were made up of heating and cooling costs.
He said putting on a jumper instead of immediately turning on a heater and for north-facing homes opening windows to let in the sun were easy ways to save power during the cooler months.In summer, switching on fans first instead of the air-conditioner can slash energy use.
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