Tasmania has historically been home to one of the most heavily regulated energy markets in Australia. While this meant retail competition was non-existent until recently, it at least made electricity and gas prices fairly stable and easy to understand.
What is the difference between retailers, distributors and generators?
Before we get underway, it’s worth making a basic point on terminology. The electricity and gas markets can respectively be broken into three tiers – retailers, distributors and generators.
- Generators: Produce the electricity and/or natural gas. Tasmania’s main electricity generator is Hydro Tasmania. Natural gas in Tasmania is imported from a variety of generators on the mainland.
- Distributors: These companies are responsible for delivering the electricity and gas from the generators to your property. Tasmania’s electricity distributor is TasNetworks. There are two gas distributors – Aurora Gas and Tas Gas.
- Retailers: Retailers are responsible for billing and customer services. The main retailers are Aurora Energy – an electricity and natural gas retailer – and Tas Gas, a natural gas retailer. But as we’ll come to, a couple of competitors have now joined the electricity market for the first time.
Can I choose my own electricity provider in Tasmania?
Aurora Energy was the only electricity retailer servicing homes in Tasmania until February 2019 when 1st Energy was permitted to enter the local market. While the Tasmanian government introduced Full Retail Competition in 2014, allowing for other retailers to enter the market and compete for customers, no one came to the table until Melbourne-based 1st Energy made the move. This was likely because power prices remain regulated. However, the good news for electricity customers in Tasmania is that, with a regulated price cap, the only way is down for any electricity retailer new to the market and looking to get households to switch.
Since the arrival of 1st Energy, several other retailers have also entered the market. In late 2019, Future X Power entered the Tassie market, offering one market offer with a small pay on time discount. As of late 2020, Energy Locals also entered the ring, shaking up the scene with an affordable electricity plan that provides customers with access to wholesale electricity rates for a monthly membership fee. And in 2021, Elysian Energy began offering its latest subscription energy service, while CovaU Energy and Glow Power also joined the Tassie market. GEE Energy is the latest retailer to offer electricity plans in Tasmania.
Tasmania Electricity Rates
Despite retail competition in the state de-regulating, prices in Tasmania still remain regulated by the Government. This means that there is very little room for variation in price for retailers in the state, based on rates alone. As such, most electricity providers in Tasmania will rely on discounts, incentives or unique proposition’s in order to beat our the competition.
Aurora Energy Rates
Aurora Energy is a state government-owned corporation and until recently was Tasmania’s only electricity retailer. Aurora’s prices remain fairly reasonable despite the relative lack of discounting and competition. It also offers GreenPower products, under its Aurora Green option, for those who are conscious about their carbon footprint.
The table below shows Aurora Energy’s electricity usage and supply charges for Tasmania, with five different tariffs available. A tariff refers to the electricity pricing structure. Different rates apply to the different tariffs. Below are Aurora’s standard residential electricity prices.
| Tariff | Type | Supply charge | Usage charge |
|---|---|---|---|
| Tariff 31 | Light and power | 98.932¢/day | 27.631¢/kWh |
| Tariff 41 | Heating and hot water | 18.447¢/day | 17.943¢/kWh |
| Tariff 93 | Time of use | 109.903¢/day | Peak: 33.399¢/kWh
Off-Peak: 15.551¢/kWh |
| Tariff 61 | Off-peak w/afternoon boost | 22.798¢/day | 14.446¢/kWh |
| Tariff 62 | Off-peak (night only) | 21.793¢/day | 13.607¢/kWh |
Prices as of August 2022. Visit Aurora Energy for more details.
Customers interested in tariff 93 will require a smart meter. It’s also important to point out that tariffs 61 and 62 are controlled load tariffs and don’t operate as a primary electricity tariff.
1st Energy Rates
The first residential electricity challenger to Aurora Energy, 1st Energy offers very similar prices across its tariff structures. However, keep in mind that even subtle differences can have a big impact over time. Below are the prices for the RACT Saver which comes with a small guaranteed discount off usage and supply charges.
| Tariff | Type | Supply Charge | Usage Charge |
|---|---|---|---|
| Tariff 31 | Light and power | 97.90¢/day | 27.28¢/kWh |
| Tariff 41 | Heating and hot water | 18.26¢/day | 17.71¢/kWh |
| Tariff 61 | Controlled load w/ afternoon boost | 22.55¢/day | 14.19¢/kWh |
| Tariff 62 | Controlled load (night only) | 21.56¢/day | 13.42¢/kWh |
| Tariff 93 | Time of use | 108.79¢/day | Peak: 33.00¢/kWh
Off-peak: 15.29¢/kWh |
Prices as of August 2022. Visit 1st Energy for more details.
Energy Locals Rates
Challenger brand Energy Locals appears to have lower rates than the other providers available in the state, however in order to do so, customers will need to pay a monthly membership fee to unlock cheaper wholesale prices. Here’s what’s on offer from this retailer:
| Tariff | Tariff Type | Supply Charge | Usage Charge |
|---|---|---|---|
| Tariff 31 | Light power | 80.00¢/day | 25.50¢/kWh |
| Tariff 41 | Heating and hot water | 89.00¢/day | 23.00¢/kWh |
| Tariff 61 | Controlled Load 1 | 110.00¢/day | 18.50¢/kWh |
| Tariff 63 | Controlled Load 2 | 110.00¢/day | 18.00¢/kWh |
| Tariff 93 | Time of use | 86.00¢/day | Peak: 33.00¢/kWh
Off-peak: 20.00¢/kWh |
Prices as of August 2022. Visit Energy Locals for more details.
Elysian Energy Rates
With Elysian Energy, rates are dealt with a little differently. On the Power Maximiser plan, customers pay a monthly subscription fee instead of a daily usage charge. In addition to covering the daily usage charge, this fee also covers the costs of the first 200kWh of energy usage each month. Any additional usage that exceeds this amount is then charged to customers at what’s claimed to be a ‘competitive rate’. Because of this subscription service it can be difficult to determine just what the rates will be for customers each month, so it’s best to check the energy price fact sheets before making a purchase decision.
Solar feed-in tariffs Tasmania
When you factor in the savings that come with solar power generation, it’s often harder to determine which provider comes out as the cheapest bet. As of July 2022, the minimum solar feed-in tariff rate was set to 8.883c/kWh in Tasmania. However, some providers choose to offer more competitive rates than this. Here are the current solar feed-in tariffs on offer from Tasmania’s energy retailers:
- Aurora Energy: 8.883c/kWh
- 1st Energy: 8.883c to 10c/kWh
- CovaU Energy: 8.883c/kWh
- Energy Locals: 8.9c/kWh
- Elysian Energy: 7c/kWh
- Future X Power: TBC
- GEE Energy: TBC
- Glow Power: TBC
Please check retailer websites for more details. Solar feed-in tariff rates accurate as of August 2022.
How to install solar in Tasmania
Installing solar in Tasmania requires approval from TasNetworks. There are six steps to installing solar in Tasmania:
- Find an accredited solar installer
- The Installer submits a connection application with TasNetworks
- TasNetworks assesses whether solar system meets technical requirements and whether the network can accommodate your solar system.
- Once approved, the solar installer will begin installation.
- Before switching the solar system on, TasNetworks will install a digital import-export meter which makes it possible to receive a feed-in tariff.
- The solar system is switched on and you’re ready to start saving with the power of the sun.
