Barbs fly over power prices

LABOR “scaremongering” over the potential for more power price rises was misleading, Energy and Resources Minister Guy Barnett says as the war of words over energy policy escalated.

The opposition party says turmoil in the national electricity market could leave Tasmanian power consumers at increased risk of further energy cost hikes.

Labor energy spokesman Dean Winter on Friday accused Mr Barnett (inset) of lying, something Mr Barnett rejected.

“That’s a terrible thing to say and I warn the Labor Party and any commentators for using words which have just been used, as they are either defamatory or potentially defamatory,” he said.

“Power prices have gone down in the last two years and, in fact, last year went down 7 per cent for residential customers, 11 per cent for small business customers and the year before that went down slightly. Since we’ve come to government, they’ve actually gone down in real terms.

“Labor’s policy is to exit the national electricity market. Labor’s policy would damage our economy and prospects for jobs and put upward pressure on power prices.”

Earlier, Mr Winter said Labor’s plan to legislate a cap on power prices was a superior policy to the one which has led to an 11.8 per cent power price rise this year.

“On radio this morning Mr Barnett lied to listeners, saying that power prices would not be cheaper if we had delinked from the national electricity market,” he said.

“These statements fly in the face of the economic regulator’s determination, which said national wholesale prices are the cause for the sharp increase in power prices.

“These wild claims come at a time when the cost of living is rising and Tasmanians are struggling.

“Comments such as these should be carefully considered by the Energy Minister before blurted out on live radio.”