Power bills could dip $400

TASMANIAN households could save more than $400 a year on power bills under a raft of changes outlined by the nation’s consumer watchdog.

The Australian Competition and Consumer Commission says electricity bills in Tasmania are the highest in the nation — but they could be slashed by 21 per cent if efficiencies were imposed.

The watchdog says the state’s residential electricity customers are paying for a “significant over-investment” in state-owned networks.

It also says that solar feedin tariff schemes have greatly benefited those who have invested in the renewable energy, but non-solar households and businesses have faced an increased financial burden through their higher bills.

The concerns and recommendations are outlined in a national Retail Electricity Pric- ing Inquiry Report, released yesterday. It identifies the causes of high electricity prices and makes 56 recommendations.

ACCC chair Rod Sims said the national electricity market is “largely broken and needs to be reset”.

“Previous approaches to policy, regulatory design and competition in this sector have resulted in a serious electricity affordability problem for consumers and businesses,” Mr Sims said.

Tasmania’s residential customers stand to gain $414 a year from the recommendations.

The report shows Tasmania’s average 2017-18 bill was the highest, at $1979 for the year, because of the state’s higher usage.

Tasmania’s customer bills are highest despite the state’s electricity prices being among the lowest.

The report says the higher electricity consumption in Tasmania is a result of the state being almost entirely reliant on electricity for power, with Hydro Tasmania the only generator of electricity.

It also shows Tasmania has had the highest increase for an average customer over the past decade, up by $557.

Acting Energy Minister Peter Gutwein said the Government would look at the report but he had reservations about a recommendation to write down energy assets.

“It would .... result in operat- ing losses and increase finance costs for Tasmania’s stateowned energy businesses, which would lead to higher power bills for Tasmanian households and businesses.”

Mr Gutwein said the Government was committed to the state having the lowest prices by 2022.

“We have introduced legislation to cap regulated electricity price increases at or below CPI over the next three financial years.”