Territorians will see a 2.7 per cent increase in their power bills from July 1

Territorians will be lumped with higher power bills from July 1. SEE THE INCREASE

TERRITORIANS will pay an extra 2.7 per cent on their electricity bills from July 1.

For a householder who pays on average $300 a month for electricity, the increase would represent approximately a $90 annual increase in their power bills.

The NT government announced the change to the so-called utilities price order during Budget Estimates.

The increase in charges will also apply to water and sewerage.

Treasurer Eva Lawler said the Territory Government subsidised power costs for Territorians by more than $123m per year.

“Labor came to government with a commitment to keep power price increases at or below CPI and this year will increase regulated utilities tariffs by 2.7 per cent, less than the Darwin CPI of 5.5 per cent,” Ms Lawler said.

“Government continues to provide assistance to those who need it most, with pensioners and carers able to access the NT Concession Scheme and NT Senior Recognition Scheme, providing financial assistance in 2022-23 of $10.3 million for electricity and $5 million for water and sewerage.”

Power bills to be jacked up across the Territory. Picture: Che Chorley

Chief Minister Natasha Fyles said the power price increase below CPI reflected the underlying inflation rate.

“It’s really important to us as a government that we see power that is at a cost that is not increasing significantly,” Ms Fyles said.

“We want to make sure that in terms of driving the economy, we believe that is the figure that the economy more broadly is growing at and that would be a fair increase in power costs.

“It’s providing that balance for Territorians.

“We do see a CPI increase but some question whether that’s a short-term increase. We’re trying to be stable and we’ve made that (price guarantee) commitment to Territorians, we’ve stuck to it for close to six years and it will continue to be our policy around power prices.

“We want to provide that stability for Territorians and we do have government-owned corporations, they’re government assets so we are able to provide that community service obligation to ensure a steady power price.”

In the latest Territory budget, Power and Water’s community service obligation (CSO) payments totalled $91.7m in 2021-22 and are expected to drop to $84.7m in 2022-23.

The budget states the decline in CSO in the upcoming financial year reflects a reduction in network costs for retailers.

On Thursday, the NT News reported issues around the supply of gas from the Blacktip Gas field, from which the Territory is contractually obliged to source its gas until 2034.

A recent Utilities Commission report noted a high rate of faults at Channel Island power station.

Originally published as Territorians will see a 2.7 per cent increase in their power bills from July 1