New Energy Minister Guy Barnett says lowest possible power prices for Tasmanians top priority

THE State Government will pursue a “Tasmania-first” energy policy to keep prices down and secure reliable power supplies, says new Energy Minister Guy Barnett.

Australian Renewable Energy Agency CEO Ivor Frischknecht, from left, MP Guy Barnett, and Hydro Tasmania CEO Steve Davy at the Cethana Power Station earlier this year. Picture: CHRIS KIDD

THE State Government will pursue a “Tasmania-first” energy policy to keep prices down and secure reliable power supplies, says new Energy Minister Guy Barnett.

Mr Barnett met with the chiefs of Hydro Tasmania, TasNetworks and Aurora Energy on Wednesday to press home the message that he did not want a repeat of last year’s energy crisis.

And, he said, his top priority was to deliver the lowest power prices in the nation for Tasmanians by 2022.

The announcement is a clear sign that the Government intends to make cost-of-living issues central to the upcoming state election campaign.

“Under my watch, our energy policy will be Tasmania-first,” Mr Barnett said.

“This means secure supply for Tasmania, and the lowest possible electricity prices for Tasmanians will be my number one priority.”

Mr Barnett said the Government would pursue plans to turn Tasmanian hydro electric dams into the “battery of the nation” and pursue new renewable energy projects “with vigour”.

But he did not address questions about what impact the policy would have on dividends from the state-owned power companies, who had been put first by the government’s policies to date, or how the new policy would affect the role of the Office of the Tasmanian Economic Regulator and the Australian Energy Regulator — which determine power prices independent of government.

The Government last year passed special legislation to cap power price rises at 2 per cent and a review has started into how prices will be set in the future.

Hydro Tasmania CEO Steve Davey said the Battery of the Nation plan was about putting Tasmania first.

“By doubling Tasmania’s renewable energy capacity, we can simultaneously lock-in Tasmanian energy security and help give Tasmanians the lowest possible power prices,” he said.

TasNetworks CEO Lance Balcombe said the company has already delivered a 20 per cent reduction in network charges.

An Aurora Energy spokesman said: “The independent Tasmanian Economic Regulator undertakes a rigorous price investigation confirming Aurora Energy operates at the lowest efficient cost whilst also ensuring price protection.’’

Labor energy spokesman Scott Bacon said the policy announcement had renounced Matt Groom’s work in the portfolio.

“Are the Liberals walking away from their commitment to investigate a second Basslink? And what will become of Mr Groom’s signature energy strategy?” he said.