Media release – Tasmanian Economic Regulator, 21 June 2023
REGULATED ELECTRICITY PRICES AND FEED-IN TARIFF RATE TO APPLY FROM 1 JULY 2023
The Tasmanian Economic Regulator, Mr Joe Dimasi, has today approved Aurora Energy’s proposed regulated retail electricity (standing offer) prices for 2023-24.
From 1 July 2023, Aurora Energy’s standing offer prices will increase, on average, by 9.51 per cent for residential and small business customers on mainland Tasmania (including Bruny Island).
Mr Dimasi said that “the price increases have been driven by external factors, particularly wholesale electricity costs which are 24.8 per cent higher than in 2022-23 and account for more than 8 percentage points of the 9.51 per cent price increase”.
Mr Dimasi recognised that any increase in standing offer prices is difficult for customers in the current environment but noted that the increase is amongst the lowest in the country, with regulated prices in New South Wales, Victoria, Queensland and South Australia increasing by between 17 and 29 per cent in 2023-24.
While the average price increase is 9.51 per cent, to reflect Aurora Energy’s underlying costs more accurately, Aurora Energy’s fixed and variable prices will change as follows:
• 15 per cent increase to all fixed retail tariff prices except for Tariff 22;
• 10 per cent increase to the Tariff 22 fixed retail tariff price; and
• 8.38 per cent increase to all variable retail tariff prices.
The approved prices are estimated to increase the annual bill for a residential customer on Tariff 31 / 41 with median usage of 7 428kWh by $201. The annual bill for residential customers on time-of-use Tariff 93 using 7 932kWh is estimated to increase by $199.
For a business customer on Tariff 22 with median usage of 3 508kWh, the annual bill is estimated to increase by $126. For a business customer on time-of-use Tariff 94 using 12 180kWh, the annual bill is estimated to increase by $284.
At median usage levels, the estimated annual bills for Tasmanian customers on regulated tariffs are amongst the lowest in the National Electricity Market.
Mr Dimasi expressed concern about the impact of the price increases on vulnerable customers but noted that the Tasmanian and Australian Governments will provide a rebate of $250 per year for 2023-24 and 2024-25 for eligible residential customers. Depending on usage, this year’s rebate should offset the impact of the 2023-24 price increase. There is also a rebate of $650 for eligible small business customers.
Customers having difficulty paying their bills are encouraged to contact their retailer. Under national energy laws, retailers must have a hardship policy and give customers information about different payment options and the availability of government assistance.
The Regulator has also determined that the minimum feed-in tariff rate for 2023-24 is 10.869c/kWh. This rate is 22.4 per cent higher than the 2022-23 rate of 8.883c/kWh. This increase is primarily due to the higher wholesale electricity price for 2023-24.
Media release – TasCOSS, 21 June 2023
Energy price hike the latest blow to Tasmanian households at breaking point
Tasmanians have been bracing themselves for another large increase in electricity prices following the 11.8% increase in prices last year, and the announcement of an 9.51% increase from 1 July will be the final straw for many household budgets already at breaking point.
TasCOSS CEO, Ms Adrienne Picone, said the price increase of 9.51%, represents an increase of $210 on an average annual bill for Tasmanian households already struggling under cost of living pressures including rising interest rates, record rent increases, and higher than CPI food, fuel and energy price increases.
“With one-in-four households already unable to afford the cost of living, this increase in electricity prices will lead to further energy debt, greater financial pressure and increased hardship for Tasmanian households,” Ms Picone said.
“TasCOSS is calling for more direct intervention from the Government by capping electricity prices to protect Tasmanian customers from price volatility in the National Energy Market (NEM).
“A cap on electricity prices has been done before by this Government in 2018 and we know it works.”*
Ms Picone said the number of Tasmanians in energy hardship and seeking support to pay their bills is on the rise, and without Government intervention will only continue to get worse.
“The Government can choose to ignore the evidence, but the reality is we know Tasmanians are under extreme energy cost pressures,” she said.
“The number of Tasmanians in energy debt continues to grow and the total amount of household energy debt has ballooned to more than $15 million. And just last week we learned that without Aurora’s contributions, the Energy Hardship Fund would have been exhausted, such is the need for financial support in the community.
“Capping electricity prices must be part of a broader strategy to combat rising energy costs. In the short-term, a review of the electricity concession scheme is also required to ensure it is well targeted and appropriate.
“Equally, to bring down energy bills in the long-term the Government needs to look closely at investing in a program of household energy efficiency initiatives to support low income and rental households.”
* The Government capped electricity prices in 2018 and has said it would act to cap prices again in the event of future price hikes (2021 State Election | Energy Policy and Department of Treasury and finance website) and volatility in the NEM to protect Tasmanian households and businesses.
Media release – Dean Winter MP, Shadow Minister for Energy and Renewables, 21 June 2023
Jeremy Rockliff’s broken promise causes another massive power price rise
Tasmanians will be paying hundreds of dollars more for power from 1 July because of Jeremy Rockliff’s broken promise on power prices.
The announcement of a 9.51 per cent power price increase today means power prices will have increased 22.5 per cent since 30 June 2022, after another big increase in July last year.
This means Tasmanian families will be paying an average of $426 more for power.
Tasmanians are suffering in the middle of a cost of living crisis, and Jeremy Rockliff’s broken promises are rubbing salt into their wounds.
At the 2021 election, the Liberal Party promised to cap prices “in the event of future volatility”. The policy is still on their website.
But like so many of the promise the Liberals have made over the last 10 years, they clearly have no intention of delivering.
In contrast, Labor has a simple belief: Tasmanians should pay Tasmanian prices for Tasmanian power.
Tasmanians have invested in the Hydro for 100 years. We own the dams, the wire, and the retailer, and Tasmanians should be ones who benefit.
That’s why a Labor government will cap power prices at 2.5 per cent within the first 100 days, saving households hundreds of dollars and small businesses thousands.
