‘Monster’ electricity bills keep Tasmanians in energy poverty, parliamentary committee hears
More than 50,000 Tasmanian households are currently suffering “energy poverty”, with residents forgoing heating in order to afford food, medicine, and rent, a committee has heard.
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More than 50,000 Tasmanian households are currently suffering the consequences of “energy poverty”, a parliamentary committee has heard, with residents forgoing hot water and heating in order to afford food, medicine, and rent.
TasCOSS chief executive, Adrienne Picone, on Thursday told the Joint Select Committee on Energy Matters that Tasmanians on lower incomes were spending a higher proportion of their income on power, with one in five households unable to afford their electricity bill.
Ms Picone said too many people across the state were regularly facing the impossible choice of rationing their energy use in colder months, doing without other essentials, or entering into debt.
“It should not be the case that in one of the world’s wealthiest nations, people are skipping meals, turning off their heating and getting sick because they can’t afford to power their homes,” Ms Picone told the committee.
“Persistent energy poverty has a detrimental impact on Tasmanians’ physical and mental health and wellbeing, which in turn places additional burden on our health system, reduces economic participation and adds further strain on our community service organisations, in particular, those delivering emergency relief.”
TasCoss said that since mid-2022, electricity prices in the state had increased by 23 per cent, with more than twice as many Tasmanian customers paying off an energy debt than during the Covid pandemic.
The peak services body claimed that over the past year there had been a 21 per cent increase in customers entering retailer hardship programs – owing a combined total of almost $10 million – with Ms Picone urging the government to fund the energy-efficient retrofitting of more Tasmanian dwellings.
“TasCOSS calls on the Tasmanian government to boost its investment in a program of household energy efficiency upgrades for low income households, including rooftop solar, insulation and thermal efficiency upgrades, and mandate minimum energy performance standards for rental properties,” she said.
“These measures will provide for healthier homes and significantly improve energy affordability for Tasmanian households by reducing electricity consumption and permanently lowering electricity bills.”
Electricity customer, Kathryn, told the committee of the ongoing feelings of shame and hopelessness she continues to experience as she struggles to pay off a historical energy debt.
Kathryn gave evidence about the extreme measures some of her friends were taking to avoid racking up ever-increasing electricity bills.
“It really affected me coming here today, because I felt so much shame and fear around having this big debt,” she said.
“It just feels insurmountable for me, and I wonder how I am ever going to ever pay it off.
“It’s this big monster debt that’s just stuck there, and I would do anything just to get a new slate.
“I know people who ended up moving into a tent without electricity, but who were happier because there wasn’t that pressure of a bill that you can’t pay.
“And I know how it feels to have that kind of relationship with electricity, of not being able to afford it.”
The committee also heard that a “whole of state” business case for the proposed $3.8 billion Marinus Link undersea electricity interconnector would be presented to the government in coming weeks.
Treasurer Guy Barnett, said the report being prepared by the Department of Treasury and Finance would consider the financial, economic, social impacts of the project that would provide a second power link between Tasmania and mainland Australia.
Mr Barnett said the business case would be considered as part of the government’s Final Investment Decision on Marinus.
“There’s a lot more work to do, and that decision will be made at a time that’s in the best interests of Tasmania,” the Treasurer said.
“I can’t commit to a date today … but it will be this year.”
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