Victoria Energy Minister Lily D’Ambrosio approved 45 per cent take hike on power companies

Lily D’Ambrosio quietly approved a 45 per cent take hike for power companies despite being warned by her own department it would push up household energy bills during a cost-of-living crisis.

Victoria’s energy minister green-lit a 45 per cent tax hike for power companies despite being warned it would push up energy prices for families.

Lily D’Ambrosio quietly approved the 44.8 per cent – $14.6 million – increase to industry levies over two years after independent government agency, Energy Safe Victoria (ESV), warned it would “not be financially viable” without the hefty top up.

The stunning bailout, revealed under freedom of information laws, shows ESV warned the minister that the price rise would flow through to households, adding another $5.30 to power bills over the two year period.

But Ms D’Ambrosio signed off on the tax hike anyway, locking in Victorians to higher costs amid a cost-of-living crisis.

Victorian Minister for Energy Lily D’Ambrosio green-lit a 45 per cent tax hike for power companies. Picture: Luis Enrique Ascu

Yearly top ups to the levy by the state government have increased household energy bills by $9.98 on average since 2017.

The Energy, Environment and Climate Action department said the extra cash would allow the ESV to bring on another 50 staff and help to“proactively regulate renewable energy” in the transition to net zero.

It, however, noted that while it supported a “substantive increase in funding” to the regulator, the department had “not conducted an in-depth review and economic analysis” of the options presented by the ESV.

The electricity, gas, and pipeline safety regulator collects fees and charges from distributors and derives more than half of its revenue from levies, raking in $32.6 million annually through industry taxes.

The extra money will be used to fund Energy Safe Victoria to regulate renewable energy projects: Picture: Tom Huntley

According to the ministerial briefing, the ESV would return deficits of more than $6 million over the two year period “without increasing revenue or reducing costs”.

“This would lead to ESV not being financially viable, having both negative cash and negative net equity in 2024-2025,” it warned.

Opposition spokesman for Energy, Affordability and Security David Davis said the document was proof that Labor was “mismanaging” the state’s energy transition, labelling the move “disgraceful”.

“The Allan Labor Government has financially mismanaged Energy Safe Victoria, requiring a taxpayer-funded bailout via levies on households and businesses, and continues to mismanage Victoria’s energy transition,” he said.

“In a disgraceful move, Energy Minister Lily D’Ambrosio has personally approved multiple increases to household energy bills, taxing Victorians more when many are already doing it tough, with the increases largely to pay for more ESV staff.”

A Victorian government spokesman said the state’s growing investment in renewable energy had ensured that “Victoria has consistently had the lowest energy bills in the country”.

“Our number one priority is keeping Victorians safe – Energy Safe Victoria prevents accidents, investigates incidents and ensures safety compliance in the Victorian energy sector,” she said.

Originally published as Victoria Energy Minister Lily D’Ambrosio approved 45 per cent take hike on power companies