Bumper Hydro profit means power rebate for Tasmanian customers

After Hydro Tasmania recorded a bumper $100m+ profit, Tasmanians can expect a sweet rebate. But will it offset this year’s 9.5pc price rise? Find out how much Tasmanians can expect to get.

Deputy Premier Michael Ferguson announces a transport strategy at Hobart. Picture: Chris Kidd

Tasmanian electricity consumers will share $7.5m in electricity rebates after power generator Hydro Tasmania recorded a bumper $105m profit.

The state government will on Tuesday announce the first Renewable Energy Dividend (RED) – equivalent to around $30 per household.

Treasurer Michael Ferguson said the Renewable Energy Dividend scheme announced in August had been designed to return a proportion of Hydro’s profits back to consumers.

“Hydro has informed the government it will this year be returning a $105 million dividend to government, and in line with our commitment first announced by the premier in his State of the State address, Tasmanians will directly benefit from that return by way of a payment on their power bills,” Mr Ferguson said.

“In recognition of cost-of-living pressures, the Rockliff Liberal Government has taken the decision to make the payment threshold even more generous.

Tasmanian parliament, Deputy Premier Michael Ferguson. Picture: Chris Kidd

“The RED scheme will now kick in when Hydro Tasmania pays a dividend of $90 million or more (indexed), rather than the previously announced $100 million.

“Based on Hydro’s dividend of $105 million to be paid this year, this means that $7.5 million of that will be distributed to households as a RED.

“As a result, every Tasmanian household will this year receive a credit of around $30 on their power bills, above and beyond any concessions they already receive, meaning they will pay less, and save more.”

Electricity prices rose by an average of 9.51 per cent on July 1, adding around $190 to the average household’s annual power bill.

Minister for Energy and Renewables Nick Duigan said Tasmania had the lowest power prices in the nation.

“Even before the RED payment, power bills for concession customers have fallen this year, and we know that Tasmanians already benefit from the lowest regulated tariffs in the nation,” he said.

“Thanks to annual electricity concessions, the National Energy Bill Relief Rebate and the RED, Tasmanians will now receive $104.5 million in electricity price relief this year.

“The RED will provide even more cost-of-living relief, and ensure Tasmanians directly share in our investment in the state’s renewable energy future.”