unlikely that carbon tax will do anything much to reduce co2 emissions On what evidence? Firstly Australia's emissions will at least rise less as renewables replace fossil fuels; secondly the more nations apply policies to reduce emissions, the more pressure will be applied to all nations to cut their emissions. (It remains to be seen whether the carbon price will be sufficient to actually cut our emissions. At the very least it has to contain the rise and soon thereafter lead to a drop.)
Australia doesn't have alternative energy for people to switch to Australia has ample sources of renewable energy. Maybe you are arguing that there are not enough renewable power stations built and on-grid to power the whole of Australia and we should build them and let them sit idle till coal-powered stations shut down.
The whole purpose of the carbon price is to encourage fossil fuel power companies to invest new capital in renewable sources; and to directly give incentives to build renewable power sources; and to encourage everyone to be more efficient in how they use electricity (eg turning off unused appliances, switching to more energy efficient appliances; using less at peak demand times).
if our present and currently readily available power source becomes too expensive Households and businesses are to be compensated for the expected rise in the price of electricity. The scheme allows flexibility so that it can be adjusted if people can no longer afford electricity. The cost of renewable power is dropping very quickly, so there is likely to be a cross-over before coal-based power 'becomes too expensive'.
Shouldn't there be readily available and affordable alternative power BEFORE we lose the power we have Why do you think we will "lose the power we have"? I see no evidence except in NSW and that's because the government failed to replace ageing infrastructure, nothing to do with the carbon price.
In any case, how would you suggest switching to renewables without incentives? Are you in favour of the taxpayer footing the whole bill like Abbott proposes?