Media release – Tasmanian Economic Regulator, 17 June 2022
STANDING OFFER ELECTRICITY PRICES AND REGULATED FEED-IN TARIFF RATE TO APPLY FROM 1 JULY 2022
The Tasmanian Economic Regulator, Mr Joe Dimasi, has today approved Aurora Energy’s proposed 11.88 per cent increase in standing offer prices under regulated tariffs for Tasmanian residential and small business customers to apply from 1 July 2022 to 30 June 2023.
Mr Dimasi said that “such price increases at this time are difficult but they have been driven by external factors. In particular, wholesale electricity costs are 37 per cent higher than in 2021-22 and account for around 10.4 per cent of the 11.88 per cent price increase.” Details of the changes in Aurora Energy’s costs are presented in the table below.
As Tasmania is part of the National Electricity Market (NEM), the wholesale electricity price set in Tasmania is heavily influenced by wholesale electricity prices in the NEM.
Rising wholesale electricity prices have also led to higher regulated prices in other Australian jurisdictions. For example, Default Market Offer prices for residential customers set by the Australian Energy Regulator, which are the maximum prices that retailers can charge customers on standing offer contracts in South Australia, New South Wales and south-east Queensland, are increasing by 7.2 per cent to 18.3 per cent in 2022-23. For residential customers in regional Queensland, the Queensland Competition Authority has increased standing offer prices under regulated tariffs by 9.2 per cent to 21.6 per cent in 2022-23.
As announced by the Regulator on 29 April 2022, in terms of the costs that the Regulator has control over, the Regulator has taken the following measures to ensure that any price increases are kept to a minimum and reflect efficient costs:
The allowance for Aurora Energy’s retail costs was reduced by $17.04 per customer from the amount originally proposed by Aurora Energy in its October 2021 submission. This reduction includes the Regulator’s additional efficiency savings of 1.78 per cent for 2022-23.
The retail margin has been reduced by $17.23 per customer from the amount originally proposed by Aurora Energy.
Mr Dimasi also noted that “Aurora Energy’s costs are further reduced by $9.53 per customer due to Aurora Energy not including the cost of the Aurora+ app in its costs for 2022-23.”
Together, the measures taken by the Regulator and Aurora Energy reduce Aurora Energy’s allowed costs in 2022-23 by approximately $44 per customer compared to the amount originally proposed by Aurora Energy. This means that the price increase in 2022-23 is approximately two per cent lower than it otherwise would have been.
The annual bill for a residential customer with median usage on Tariff 31 / Tariff 41 is estimated to increase by around $227. For a residential customer with median usage on the time-of-use (ToU) tariff, Tariff 93, the annual increase is estimated to be around $196. The annual increase is estimated to be around $176 for a business customer on Tariff 22 with median usage.
Mr Dimasi encouraged eligible customers to access the State Government concessions to assist in meeting the cost of their electricity bills.
The Regulator has also determined that the minimum feed-in tariff rate for 2022-23 is 8.883c/kWh. This rate is 37 per cent higher than the 2021-22 rate of 6.501c/kWh. This increase is due principally to the higher wholesale electricity price in Tasmania for 2022-23.
Mr Dimasi notes the feed-in tariff forms only part of customers’ benefits from generating their own electricity, with the main gains being through the consumption of the electricity they generate.
Aurora Energy’s Standing Offer Pricing Proposal and the approved 2022-23 Standing Offer Price Schedule are available at:
https://www.economicregulator.tas.gov.au/electricity/pricing/retail/pricing-approvals.
More information about feed-in tariffs is available at:
https://www.economicregulator.tas.gov.au/electricity/pricing/feed-in-tariffs.
Media release – Jeremy Rockliff Premier, Guy Barnett Minister for Energy and Renewables, 17 June 2022
Tasmanian Winter Energy Assistance Package
Following the pricing determination from the independent Tasmanian Economic Regulator, the Tasmanian Government is taking immediate action to assist Tasmanians through a new Winter Energy Assistance Package.
The package will provide targeted support to those most in need, as well as energy efficiency options for families and small businesses, and the tools for Tasmanians to help manage their power bills.
Last year, households received a 7.11 per cent reduction in regulated electricity prices, small businesses received an 11 per cent drop and, since coming to office in 2014, in real terms, regulated energy prices under this Government have decreased by 18 per cent for residential customers and decreased by more than 27 per cent for small business customers.
Under the Regulator’s determination today of an 11.88 per cent increase, Tasmanians on concessions with median electricity consumption, will see a yearly increase in their power bill of approximately $143, while non-concession card holders with median consumption, will see a yearly increase of around $227, or $4.37 per week.
The Tasmanian Government understands it is going to be a difficult winter for many, and that is why the Winter Energy Assistance Package includes:
- A $180 Winter Bill Buster discount applied to bills for eligible electricity concession account holders, including those in embedded networks. This discount will be made up of the $61 concession increase that was budgeted to flow to concession card holders this year, plus a bill credit of $119 to help offset the increase to be provided on eligible customers’ next bill from 1 August 2022. This package totals almost $17 million in assistance.
- A boosted and expanded $50 million Energy Saver Loan scheme, providing up to $10,000 for an interest free loan to private residential customers, small business customers and landlords of residential rental properties to invest in energy efficient products to help lower their electricity bills.
- No charge for aurora+ from 1 July 2022. By providing greater visibility over their electricity usage, Tasmanians using aurora+ are significantly less likely to experience bill shock and their debt levels are significantly lower than customers who don’t use it. Over the next 12 months, Aurora will work to get as many Tasmanians signed up to aurora+ as possible facilitated by the accelerated roll-out of advanced meters.
- A $1.7 million Aurora Customer Support Fund and YES incentive payment extension to support residential and small business customers experiencing financial vulnerability with subsidised payment plans and one-off payments. Aurora’s YES program (financial hardship) incentive payment will also be extended for another 12 months from 1 July, to provide residential customers who are meeting their payment commitments at their quarterly review with a credit to the value of their next fortnightly instalment up to $200. This is in addition to $200,000 recently made available from Aurora to the Salvation Army and emergency relief providers to assist customers experiencing vulnerability.
In addition, the Government continues to invest $4.5 million each year on upgrading our social housing stock to increase energy efficiency, including things like double glazing, insulation, ventilation upgrades, cladding, heating, hot water systems, energy efficient lighting, floor covering and roofing upgrades.
The Tasmanian Government will also continue to monitor cost of living pressures on Tasmanians and stand ready to respond with further measures if required.
Further details on the Winter Bill Buster payment and Energy Saver Loan Scheme will be available in coming weeks, however any residential customers that need an extra hand are encouraged to contact Aurora’s YES Team (Monday to Friday from 9am-4.30pm) on 1300 10 2010 or visit auroraenergy.com.au for more information on Aurora’s programs, including signing up to the aurora+ app.
The Tasmanian Government remains committed and continues to deliver on its goal of having the lowest or amongst the lowest electricity prices in Australia.
Media release – TasCOSS, Friday 17 June 2022
Tasmanians stung with electricity price hike when they can least afford it
The announcement of an 11.88% increase to electricity prices next month is a further blow to Tasmanian electricity customers, with household budgets already under pressure from rising prices and falling real wages.
TasCOSS CEO Ms Adrienne Picone said it was becoming increasingly more difficult for Tasmanian families to afford the basics, with a surge in household electricity costs now compounding the pain felt by the rises in the cost of food, housing, health, transport, education, recreational activities and insurances over the past year.
“I can’t emphasise enough how incredibly tough life is for Tasmanians living on a low income right now,” said Ms Picone.
“It’s scrounging, it’s scrimping, it’s having to make insidious decisions between putting a meal on the table or paying a bill, or going without hot showers and turning off the heater in the depths of winter to bring costs down. The significant increase to electricity prices is only going to make an already bad situation worse.
“We were pleased however, to see the Government’s recognition of the strain this price increase will place on the most vulnerable with the announcement of an increase in the electricity concession and a bill credit for concession card holders.
“It was also positive to see the removal of the aurora+ product fee which is a barrier to 90,000 Tasmanians accessing its benefits.
“TasCOSS has been persistent in calling for the removal of the additional aurora+ fee as it will help households to better understand and manage power usage, lower bills and mitigate bill shock.
“We also acknowledge the additional support Aurora Energy is making available through its YES program for customers experiencing financial difficulty.”
With the throes of winter upon us, Ms Picone said it was important for Tasmanians struggling to pay their bills or meet their the electricity costs to contact their retailer to discuss support options available.
Dean Winter MP, Shadow Minister for Energy and Emissions Reduction, 17 June 2022
Barnett’s “solution” to electricity bill crisis is a cruel hoax
Failed Energy Minister Guy Barnett has followed his sheer incompetence on electricity bills with a cruel hoax on Tasmanians who most need help in a cost of living crisis.
Following his abject failure on power bills which will rise by 12 per cent because he abandoned the government’s key energy policy to de-link Tasmania from the National Electricity Market, Mr Barnett has attempted to cover his tracks today with a series of re-announcements and so-called initiatives which will do little to help struggling families.
His “announcement” of a one-off payment to pensioners will barely cover half the of the electricity price increase and does nothing for Tasmanians who are struggling with the cost of living.
Loans of $10,000 are no use to Tasmanians struggling to make ends meet week-to-week.
And Mr Barnett is also taking credit for removing an aurora+ charge that he introduced when in fact he was prepared to do nothing before Labor raised the issue of the additional charge – and this is already factored into the price rise anyway.
Mr Barnett along with Jeremy Rockliff have to accept responsibility for a mess they have created and which will see families struggle even further with no help from the Liberal Government.
Cost of Rockliff’s broken power promise laid bare as families take massive hit
The price of Premier Jeremy Rockliff walking away from his key electricity policy has been laid bare with Tasmanian families set to be hit with price increases of more than $200.
Mr Rockliff has abandoned Tasmanian families, as well as small business, struggling under the weight of his incompetent economic management.
With an unaffordable 12 per cent increase to power bills announced this morning, families are now facing a cost of living apocalypse.
Mr Rockliff was offered a solution this week before he jetted off to Canberra when Labor tabled legislation that would have set a price cap of 2.5 per cent price rises on electricity bills for Tasmanian households and small businesses over the next three years.
But Mr Rockliff and his colleagues voted against dealing with the Bill, putting on full display their disdain and lack of care for Tasmanian families struggling to make ends meet and businesses facing mounting costs.
This was off the back of the Rockliff-Ferguson Government walking away from its key energy policy to de-link Tasmania from the National Electricity Market which the Economic Regulator has said today has left Tasmanians exposed to huge price increases.
With power bills now beyond the average family’s reach, broken promises, soaring cost of living, real wage cuts and ballooning debt, it’s clear Mr Rockliff and his incompetent Treasurer Michael Ferguson are simply not up to the job on the economy.
David O’Byrne MP, Member for Franklin, 17 June 2022
Energy bill shock result of Government’s deliberate inaction
A massive 11.88% increase in the regulated price of electricity in Tasmania will shock household power bills, but the State Government is still refusing to step in and offer a winter energy supplement.
“Today’s energy price determination by the Tasmanian Economic Regulator will send household energy bills soaring, which will have a dire impact on stretched household budgets and families doing it tough,” said Franklin MP David O’Byrne.
“Despite knowing this was going to happen, the State Government have chosen to sit on their hands, do nothing, and ignore the severe economic and social impacts this will have on Tasmanian households.
“During budget estimates, I repeatedly called for the Government to reintroduce the winter energy supplement it offered in 2018 and 2021. But it turns out that this government only offer winter energy supplements in election years.
“Unfortunately, the only way Tasmanian families will see a winter energy supplement is if the state government call another snap election. Energy bill relief is needed right now, not in three years’ time.
“The various energy concessions cobbled together and announced this morning by the Government do not fix the underlying problem of surging wholesale prices and do absolutely nothing for businesses and industries who will bear the brunt of this price surge.
“Part three of the government’s ‘Winter Energy Assistance Package’ is to stop charging Aurora customers for the Aurora+ app that most customers can’t even use anyway. This is nothing but a kick in the guts for families struggling under the soaring cost of living.
“The fact that AEMO had to suspend the national energy market this week, while various state governments have introduced legislative caps on prices, demonstrates the energy system in Australia has failed. This is an opportunity to reconstruct the energy system in Tasmania and nationally to deliver a better outcome for households and businesses alike.
“Playing on the fringes of this debate with piecemeal initiatives doesn’t resolve these issues.
“Unfortunately, Energy Minister Guy Barnett has demonstrated he has zero appetite for considering these much-needed energy sector reforms. His only plan for ‘reform’ is to axe up to a quarter of the TasNetworks workforce.”
