Media release – TasCOSS, 6 June 2023

Minister’s misleading claims on energy and debt are hurting households

Minister for Energy, Hon Guy Barnett MP, has repeated several misleading claims in Budget Estimates hearings that demonstrate a lack of understanding of the severe impact that skyrocketing electricity prices are having on Tasmanian household budgets and energy debt.

TasCOSS CEO Adrienne Picone said Minister Barnett misled the Estimates Committees by repeating claims in both the Legislative Council and House of Assembly hearings that energy debt “has nearly halved”.*

“Retailer data reported to energy regulators clearly shows both the number of households in debt and the level of debt is increasing, yet Minister Barnett repeated the claim that debt levels have halved,” Ms Picone said.

“Tasmanian households are struggling under rising electricity prices and are currently burdened with $15 million of energy debt (an increase of 17% in the past year), while the number of households with an energy debt has also increased by 27% with an average debt of more than $1,000 per household.”

Ms Picone said the Minister also continues to mislead Tasmanians on concessions, claiming the Tasmanian Government provides the most generous concession scheme in the country.*

“If the Government wants to have the most generous concessions, we look forward to the discount increasing to $1,200 per year, the same level as for Northern Territory residents,” she said.

“The measure of the concession should be how well it supports Tasmanians to afford their energy bills, not a competition between jurisdictions. With the number of households in debt increasing, it’s reasonable to conclude the current concession is inadequate.”

Ms Picone said Tasmanians are also bracing themselves for another large increase in electricity prices next month, following the 11.8% increase in prices last year.

“Household budgets are already at breaking point and if prices increase by 20-27% as seen recently on the mainland, we can expect further debt, greater financial pressure and increased hardship for Tasmanian households,” she said.

“The Tasmanian Government’s drip-fed $250 energy bill relief payment over two years will be quickly absorbed by higher electricity bills.”

TasCOSS is calling for the Government to take more direct action to support households to manage their energy bills and help to prevent people entering energy debt by:

  • capping electricity prices (as it did in 2018 and said it would do again in the event of future volatility to protect Tasmanian household and businesses from future price hikes);
  • undertake a review of the electricity concession scheme to ensure it is well targeted and appropriate;
  • invest in a program of household energy efficiency initiatives to support low income and rental households to lower their energy bills.


Media release – Dean Winter MP, Shadow Minister for Energy, 6 June 2023

Liberals’ hardship scheme barely helping businesses

It was revealed today in Budget Estimates that only 10 businesses have been approved grants under the Liberal Government’s energy hardship scheme, for a combined total of approximately $160,000.

Only 18 businesses have applied, in a process which has been plagued by onerous red tape.

When the Liberals announced the $6 million grant program, businesses were told it would help them out when dealing with their massive new power bills.

It turns out, it is barely helping anyone.

I’ve spoken with businesses who don’t meet the criteria because the price they used to pay was too low, they don’t use enough power or there’s just so much red tape they can’t afford the time to apply.

Most businesses I’m speaking to can’t access the scheme at all.

It is supposed to be a $6 million program, yet only $160,000 has gone out the door and it’s over halfway through.

Today’s revelations make it clear the minority Liberal government needs to adopt Labor’s policy for a power price rebate scheme for Tasmanian businesses.

Liberal Government fails to cap power prices despite their own policy

Energy Minister Guy Barnett needs to come clean and follow through on the Liberal Government’s policy to cap power prices.

During Budget Estimates this morning Minister Barnett was asked whether the Delivering Affordable, Reliable Clean Energy document, which is on the Liberal Party’s website, was still the Rockliff government’s energy policy.

This policy details that the minority Liberal Government would “successfully delink from mainland wholesale market volatility through legislated, capped regulated power prices and the Commercial and Industrial rebate scheme”.

It goes on to say that: “In the event of future volatility, we retain the ability to reintroduce one or both of these schemes in order to protect Tasmanian households and business from future price hikes”.

If this is the government’s policy, why isn’t the government implementing it?

Instead of answering the question, Minister Barnett said he did not support a power price cap and referred to the 2018 policy – which he has also broken.

He also failed to acknowledge that the 2021 policy was still available on the website.

Tasmanians are in a cost of living crisis and we have a Minister who is failing to acknowledge that.

Labor will cap power prices at 2.5 per cent each year for the next three years.

This Liberal minority government is a complete mess and in meltdown and Minister Barnett’s performance today is an embodiment of that.

If the Liberal Government hasn’t addressed power prices in 10 years, it never will.