The prospect of rising electricity prices during the winter months is cold comfort for Tasmanian households struggling with a cost of living crisis says the state’s peak social services body, TasCOSS.
The announcement of the second instalment of the Government’s so-called Renewable Energy Dividend (RED) comes as the Tasmanian Economic Regulator has approved an increase in electricity prices.
“While welcome bill relief for the tens of thousands of Tasmanian households struggling to afford their energy bills, the $60 one-off Renewable Energy Dividend will be quickly consumed by the $50 increase in electricity bills announced by the Tasmanian Economic Regulator earlier this week,” Picone said.
“The Renewable Energy Dividend is a poorly targeted rebate that will gift $3 million in energy bill relief to the wealthiest 20% of households in Tasmania.
“Given the constraints on our state’s finances, Government spending must be efficient and targeted to ensure the most benefit goes to those most in need.”
Picone said the announcement of a $60 rebate comes the day after the Tasmanian Economic Regulator released their price determination that will see electricity prices rise by more than 2% from 1 July, adding around $50 annual to the bill for a customer with median usage.
“The latest pricing announcement means that since 2022, electricity prices have increased by a cumulative 26%, more than double the rate of inflation, adding an extra $490 to an average household bill in just three years.
“Energy bill rebates are necessary in the current climate of a cost of living crisis and rising electricity prices, but they are one-off supports that do not address the underlying issues of high energy consumption or rising energy costs.
“To support people on low incomes and guard against the impact of future price increases, TasCOSS continues to call for greater investment in household energy efficiency upgrades and rooftop solar, to improve the thermal efficiency of our poor housing stock, reduce energy consumption and lower household energy bills over the long-term.”
When announcing the RED, Premier Jeremy Rockliff said that subsidy has already been applied since 1 May and will appear in a customer’s next electricity account.
“When Hydro makes money, Tasmanians save money, and we are pleased to deliver further bill relief to all households this year so they can heat more and pay less as they head into the colder months,” he said.
The Tasmanian Economic Regulator, Joe Dimasi, had announced an an average price increase of 2.13 per cent for 2025-26.. The price increase is largely being driven by rising network costs.
For business customers on Tariff 22, annual bill increases are estimated to range between $11 for annual usage of 222 kWh and $159 for annual usage of
25 388 kWh. Business customers on Tariff 94 with median annual usage of 12 180 kWh would see a bill increase of $72.
The Regulator noted that the average price increase is above Hobart’s annual Consumer Price Index increase of 1.6 per cent to the March quarter 2025
and that regulated prices in Tasmania remain amongst the lowest regulated prices across the National Electricity Market.
Meanwhile solar panel owners will take a hit as the Regulator indicated that the compensation for power exported to the grid will be reduced.
Dimasi said that , based on currently available information, the provisional Feed in Tariff rate for 2025-26 is estimated at 8.607 cents per kWh.
“This rate is 3.7 per cent lower than the rate for 2024-25 of 8.935 cents per kWh which is mainly due to the lower provisional wholesale electricity price for 2025-26,” he said.
Entura for sale
Tasmanian Labor Leader Dean Winter has labelled the proposed sale of Entura, a division of Hydro Tasmania, as ‘unTasmanian’.
“Tasmanians are proud of the Hydro,” he said. “For the past 100 years, the Hydro has been powering our industries, keeping costs down for households, and helping to pay for schools and hospitals.”
“Make no mistake: this is a massive broken promise from Jeremy Rockliff and follows his previous admission that Momentum Energy – a subsidiary of Hydro – is also up for sale.”
Ttwo months ago, Jeremy Rockliff promised Tasmanians in his State of the State Address that: “Hydro will always remain in public ownership.”
Economic consultant Saul Eslake revealed on radio that he has been instructed to consider the privatisation of Entura, which is a key part of Hydro Tasmania.
Entura, a specialist power and water consulting firm, employs more than 250 people.
On 29 April this year, Erin van Maanen, Executive General Manager – Strategy, Hydro Tasmania explained to the Joint Select Committee on Energy Matters that Entura is not a subsidiary but an integrated component of Hydro’s operations.
“(Entura is) not a separate subsidiary, it operates as a department of Hydro Tasmania under the same ABN, with a different trading name. So, the employees are part of the broader business, its revenues, income and profits are consolidated into the Hydro Tasmania financial statements and are not prepared separately.”
“It (Entura) exports 100 years of Tasmanian renewable energy experience and engineering all over the world,” said Winter.
“Selling the Hydro is unTasmanian. I will not stand by while Jeremy Rockliff and the Liberals try to sell Tasmania’s future.”
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