We pay more for power
Cheaper but use is higher
TASMANIA has the second lowest average electricity prices in the country, but consumers still pay the most overall on energy bills of any Australian state and territory.
The state’s relatively cool climate and low penetration of natural gas compared with the mainland means customers are stung with the highest electricity bills nationwide.
A report this year by Goanna Energy Consulting, commissioned by the Tasmanian Council of Social Service, found annual household energy bills had risen from $1337 in 2009-10 to $1945 in 2019-20, a 45 per cent increase.
The report also said the state government’s more recent promise to deliver the lowest regulated electricity prices in the country by 2022 meant little to consumers.
Goanna Energy’s Marc White said what mattered most was how much lighter consumers’ wallets were after they had paid their bill.
“Particularly because of the local weather conditions and the lack of access to natural gas, we have very high electricity consumption per household,” Mr White said.
“Even though our rates are reasonably good, we don’t have access to a lot of competitive market offers and there is really only a small choice of retailers in Tasmania.”
TasCOSS chief executive Adrienne Picone said energy was an essential service and was critical to individual, family and community health and wellbeing.
“Tasmanians are paying the highest power bills in Australia and those with low incomes are paying disproportionately more of their income on energy,” Ms Picone said.
“The Tasmanian government’s promise of the ‘lowest regulated electricity prices in Australia’ is not meaningful and omits the fact that most customers on the mainland access market offers resulting in prices lower than the regulated price.”
She said lowering electricity prices would go a long way to helping customers manage power bills, but said more government investment in household energy efficiency upgrades was needed.
From July, Tasmanian households are receiving a 7.11 per cent decrease in electricity prices while for small businesses it has dropped 11 per cent, as approved by the Tasmanian Economic Regulator.
Aurora Energy chief product and customer officer Andrew Crozier said it understood Tasmanians consumed more electricity on average than mainland counterparts.
Mr Crozier said this was due to the cool climate, older building stock and inefficient energy use, but also due to a lack of penetration of alternative energy sources.
“That’s why we’re focused on empowering our customers to make informed choices to help control their energy costs through free tips and tools on our website,’’ he said.