Tasmania votes: Labor’s big plan to cut electricity costs

If Labor are elected, they’ve promised a cost of living relief on electricity bills — saying young people and renters are set to be the big winners. Rolling election updates >>

Blackmans Bay resident Fran Spears with Labor's Energy spokesman Dean Winter and Labor leader Rebecca White speak to the media at Blackmans Bay on Tuesday, February 20, 2024.

Labor has pledged to scrap electricity connection and disconnection fees for households if elected to government at the March 23 state election.

Labor leader Rebecca White said the policy would apply to all residential customers but would benefit renters more because they tended to move more frequently.

The policy is estimated to cost $4m a year and will be taken out of TasNetworks’ profits

The state-owned business made a surplus of $26m last financial year — of which $22.6m was returned to government coffers.

“On average renters are moving every two years and the cost each of those times can be as much as up to as much as $200 for renters to pay for both their disconnection and reconnection fees,” Ms White said.

Fran Spears recently moved home and was slugged for disconnection and reconnection fees.

She said her son’s family, who also rent, have paid the fees six times in eight years.

Blackmans Bay resident Fran Spears with Labor's Energy spokesman Dean Winter and Labor leader Rebecca White.

“Every time he moves, they’ve had to pay disconnection fees and reconnection fees,” she said.

“That starts some behind the eight ball to begin with.

“With all that and the rest of the costs that have been going up here in Tasmania, in the 21 years that I’ve been here, I’ve stopped going out I don’t drive anywhere anymore unless I have to because you can’t afford it anymore.”

Labor’s energy spokesman Dean Winter said it was unclear why the fees were so high when sending meter readers to properties was often no longer necessary.

Tenants’ Union of Tasmania spokesman Ben Bartl said thousands of renters a year would be better off under the policy.

“More than 16,000 rental households will have more money in their back pocket if the ALP policy to waive connection fees is implemented,” he said.

“Whilst waiving connection fees will help address cost of living pressures, we also need to amend the law so that it is easier for renters to stay in their homes long-term.”

Though levied as part of customer’s power bills, the fees are collected on behalf of by TasNetworks, Aurora Energy said in a statement.

“Aurora Energy receives no revenue from connection, disconnection or final meter reading fees,” the statement said.

“Connection, disconnection and final meter reading fees are primarily the responsibility of TasNetworks, with these set by the Australian Energy Regulator. Metering companies also levy some of these connection service fees.

“Aurora Energy is the ‘pass-through’ agent for these services.”