Northern Territory electricity price jumps 3.9 per cent in biggest hike in years

A 3.9 per cent price jump, coming into effect on Monday, could cost families and businesses hundreds extra on their power bills.

The average NT household will pay an extra $73.70 on their power bills as the biggest tariff hike in years comes into effect on Monday.

Territorians’ power prices will jump 3.9 per cent on Monday, marking the largest increase in tariffs in at least five years.

Based on an average power bill of $1890 each year, as estimated by comparison company Econnex, the increase will cost households an extra $73.70 in the next financial year.

Businesses spending $16,800 on power each year will have to pay an extra $655.

The 3.9 per cent jump is significantly higher than those of recent years, prices increasing just 2.7 per cent in 2022 and 2023, and less in the years prior.

ELECTRICITY PRICE INCREASES:

• FY20 to FY21: 0 per cent
• FY21 to FY22: 2.3 per cent
• FY22 to FY23: 2.7 per cent
• FY23 to FY24: 2.7 per cent
• FY24 to FY25: 3.9 per cent

Power prices are set by the treasurer, with a general aim to keep them at or below the level of inflation.

Shadow Essential Services Minister Josh Burgoyne said the price hike showed “yet again Labor can’t be trusted to tell the truth”.

“Labor is hiding the truth from Territorians by not only sneaking through a power price rise but claiming the mandatory service obligation takes action to ease the cost of living,” he said.

The government said that without millions being spent on the CSO, power bills would be much higher.

A government spokesman said that without the community service obligation, which received a $55.2m boost in this year’s budget, the tariff increase would have been much higher.

“We know every dollar counts and that the cost of living is a major issue for Territorians,” he said.

“Budget 2024 provides $164.2m in community service obligation payments to Power and Water Corporation and electricity retailers to subsidise utility costs.

“This means the increase in the power bill of Territory residents and businesses is much less than it would have been otherwise.

“With the federal government’s energy bill relief credit of $300 for every household combined with the Lawler Labor government’s community service obligation, power costs for Territory households will be around $1500 less on average in the 2024-25 financial year compared to if this support wasn’t provided.

“The $1500 investment, on average, for Territory households by the Lawler Labor government and the federal government means the power increase will be below the current inflation rate of 4 per cent.”