Tasmania’s energy bills will increase by almost 12 percent from July 1, adding to the rising cost of living.
Key points:
- Energy prices will rise by about $ 200 a year starting July 1st
- The state government has announced a winter energy package to help those most affected
- The government says the disengagement from the National Energy Market would have unintended consequences
The price increase is about $ 200 per household per year.
It comes just a week after the Reserve Bank raised the cash rate by 50 basis points.
In the meantime, inflation stands at 5.1% and is expected to reach 7% by the end of the year.
State Energy Minister Guy Barnett acknowledged that this was a difficult time for Tasmanians and Australians.
“It has come at a very difficult time and a very challenging time for all of us in Australia,” he said.
“In other jurisdictions, there have been increases of up to 21 percent.”
Barnett said the government would respond to rising energy prices by introducing a “winter energy assistance package.”
“It will be directed and will support those who need it most,” he said.
The package will include a $ 180 discount for eligible electricity concession account holders; $ 61 was already budgeted.
The loan scheme for energy savings has also been strengthened.
The program offers homeowners, homeowners and small businesses an interest-free loan of up to $ 10,000 to invest in energy-efficient products to reduce their electricity bill.
“It’s a difficult time, that’s for sure, and as a government we’ve always had in our minds the ability to support those most in need and those who make it hard,” he said.
Most of the increase in the price of electricity in Tasmania can be attributed to wholesale electricity costs, which are 37% higher during the 2021-22 fiscal year.
Ways to reduce the cost of living
Tasmania entered the National Electricity Market (NEM) in 2006 when the Basslink submarine power cable in Victoria began operating.
As a result, the wholesale price of energy in the state is heavily influenced by the domestic market.
Pressed on whether the state could disconnect from the NEM, Barnett said on Friday that it would have “unintended consequences”.
“We have to stay in the National Electricity Market,” he said.
“An exit would be very detrimental to employment, growth, development and ultimately also have an impact on our electricity prices.”
Barnett rejected the suggestion that joining the NEM had caused prices to rise in Tasmania, saying it was because prices had risen across the country.
The government previously disconnected from the NEM between 2017 and 2020 by imposing a limit on wholesale tariff increases, but recently abandoned this policy.
Read more about Australia’s energy crisis:
Opposition energy spokesman Dean Winter said the government had disappointed Tasmanians by refusing to support a Labor bill to “disengage” from the NEM by limiting the price increase. energy at 2.5 percent.
“Prices have risen astronomically because this government has not done its job, it has not lived up to its electoral promise to keep energy prices lower for Tasmanian families,” he said.
“Tasmanian families are being hit hard by the cost of living crisis.
“We don’t think they can afford a $ 227 increase in their electricity bill next year, so we tried to stop it.”
Tasmanian economic regulator Joe Dimasi told ABC Radio Hobart’s Mornings program that the cost of generating power across the NEM accounted for almost the entire increase.
“What we do is look at the costs that Aurora faces and we analyze all those costs and try to get a reasonable result, and obviously we make sure that the price increase is not absolutely higher than it should be. to cover those costs, “he said.
But Dimasi said Aurora could choose to absorb some of the cost.
“That’s the most Aurora can increase its average bills,” he said.
“They can’t go above. If they go below, that’s their call.”
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Posted 15 hours, 15 hours ago, Friday, June 17, 2022 at 2:43 AM, updated 10 hours ago, 10 hours ago, Friday, June 17, 2022 at 7:40 AM