A parliamentary inquiry will look into Tasmania’s rising power prices

As Tasmanians continue to buckle under power price pressure, a parliamentary inquiry into the state’s energy prices will try to unravel why our bills are going up so quickly. What they will examine.

Luke Edmunds MLC at Parliament Lawn. Picture: Chris Kidd

A parliamentary inquiry into Tasmanian energy prices will try to unravel why power bills are going up so quickly.

The Legislative Council Government Administration committee will also look at “opportunities and challenges” for the state as owners of power generation and transmission infrastructure.

Inquiry Chair Ruth Forrest MLC said it was clear many Tasmanians were finding rising energy costs were difficult to bear.

“The committee acknowledges the significant cost of living pressures many Tasmanians are currently experiencing,” she said.

“Energy prices form a significant part of these costs.

“This important inquiry seeks to better understand the factors that impact energy prices and consider how best Tasmanian consumers can be informed of these factors.

Tasmanian Labor Leader Rebecca White and Luke Edmunds MLC at Parliament Lawn. Picture: Chris Kidd

“Opportunities and challenges related to the state ownership of our transmission and generation assets may assist in informing the committee, the government and consumers and seeking options to reduce these cost pressures for consumers.”

“The committee welcomes submissions from interested stakeholders and members of the community.”

Labor MLC Luke Edmunds promised he would work to establish an inquiry into power prices as one of his election pledges last year.

“This is a genuine attempt to get to the bottom of a massive pressure point for household budgets. People’s power bills are going up. People want to know why. Hopefully this inquiry can answer that and give people confidence in the way we do things in Tasmania.

“Collectively, we’re casting the net really wide in terms of who we get submissions from, will then be able to bring people into the committee and ask questions in the right spirit to get to the bottom of a really important issue for Tasmanians.

Deputy Premier Michael Ferguson said the inquiry probably wasn't necessary.

“We will continue as a government to put downward pressure on our power prices, to the extent that we provide support, particularly for concession holders, and people on limited incomes,” Mr Ferguson said.

Tasmanian Labor Leader Rebecca White at Parliament Lawn. Picture: Chris Kidd

“For the first time ever, this financial year, we’re providing support to families that haven’t previously received it, who are on Family Tax Benefit payments from the Australian government.

“So six out of 10 homes in Tasmania will in fact be paying less for their power this year than last year and we’ll continue to implement policies that grow investment and push down the wholesale price of energy so that our customers, including businesses can benefit.

TasCOSS CEO Adrienne Picone welcomed the inquiry.

“Since 1 July 2022, electricity prices in Tasmania have increased 22.5 per cent, far exceeding the increase in the Consumer Price Index and wages growth over the same period, which have risen by 5.5 per cent and 3.9 per cent respectively,” Ms Picone said.

“With one in four households already unable to afford the cost of living, adding about $428 to the annual bill of a residential customer with median usage is a shock to Tasmanians attempting to budget week to week.

“As a result, we’ve seen a spike in energy debt, with greater financial pressure and increased hardship for Tasmanian households.”

The closing date for submissions to the committee October 13.