25th May, 2017
Matthew Groom, Minister for Energy
The Hodgman Liberal Government knows that power prices are a real cost of living concern for Tasmanians.
That’s why in the 2017-18 Budget the Government is acting to keep power prices as low as possible for households and businesses.
This year, wholesale power prices, which make up a significant component of the average household and business power bill, have been rising due to the blackouts in South Australia and the closure of the Hazelwood power station in Victoria.
The Government will not let these massive price hikes be passed on to Tasmanian customers. We have already introduced legislation to cap power price increases at around two per cent for the next 12 months, at a cost of around $70 million in forgone revenue. This means that the average household will save around $300 over the next 12 months.
The Government, in cooperation with Hydro Tasmania, has recently announced that it will, at a cost of around $10 million to $15 million provide lower pricing to medium to larger business customers that can’t access the regulated market.
The Budget will also contain an additional $20 million relief for medium-sized businesses that may be affected by higher power prices. Businesses affected by rising wholesale prices will be eligible to receive additional support. This will assist those customers that entered into contracts earlier this year between the first of January and prior to Hydro lowering the wholesale price.
These measures together with foregone revenue represent an investment of more than $100 million to ensure that power bills for Tasmanian households and businesses are the most competitive in the nation, which is good for households and good for jobs.