After years of discussion and debate, the Emissions Trading Scheme finally comes into effect today.

The scheme, which imposes costs on greenhouse gas emitters, will hit electricity and fuel prices the hardest.

The Government is predicting an average $165 increase in costs for households, and is urging power and petrol companies not to pass costs directly on to consumers. 

Agriculture won’t be included in the scheme until 2015, but industry groups are warning farmers to have their wallets open, as most of their costs are have already started.