Power users face $40 a year rise

TASMANIAN r e s i dential electricity consumers face an average $40 a year increase in electricity bills in 2018-19.

The 2.05 per cent rise comes after a decision by the Tasmanian Economic Regulator.

In the election campaign, the Hodgman Government promised to cap power prices at the Consumer Price Index for three years. The CPI for Hobart was 2.1 per cent.

The regulator Joe Dimasi said the $40 rise in Aurora Energy prices would apply to 238,000 households with a rise of about $45 for small business customers.

Mr Dimasi said Treasurer Peter Gutwein had issued a Wholesale Electricity Price Order and Ministerial Notice, which ensured that price increases for 2018-19 could not exceed CPI.

Prices rose 3.4 per cent in 2016-17 and 2 per cent in 2017-18. Interstate price rises were in the double digits.

The Government is expecting a dividend of $16.4 million from Aurora Energy this financial year and $35 million from TasNetworks.

Energy Minister Guy Bar- nett said the Hodgman Government’s intervention would mean an annual saving of about $153 for the average Tasmanian household and $169 for the average business.

He said a 10.6 per cent increase would have occurred had the Government not acted.

“As a result, today’s announcement by the Economic Regulator confirms that Tasmania’s power prices will remain among the lowest in the country,” Mr Barnett said.

“This power price cap is a result of direct intervention by the Hodgman Liberal Govern- ment to avoid what would otherwise have been a much higher increase.”

Mr Dimasi said Aurora’s increased metering costs and the costs of meeting Renewable Energy Target obligations were offset by lower wholesale electricity costs.

Mr Barnett said regulated power prices were 6 per cent lower in real terms than when the Hodgman Government was first elected in 2014.

“This is in stark contrast to the previous Labor-Green Government that oversaw regulated power price increases of around 65 per cent,” he said.