Power price rise tipped to add less than $5 to the average household bill
Tasmanian electricity bills are set to rise for the next financial year after the regulator approved an increase on prices. But can rebates balance the books? How much households will be paying.
Tasmania
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Tasmanian electricity bills will rise by 0.5 per cent in 2024/25, adding less than $5 to the average domestic user’s quarterly bill.
The Tasmanian Economic Regulator said it has approved an increase to Aurora Energy’s standing offer prices — which rose 9.5 per cent last year.
The approved prices are estimated to increase the annual bill for a residential customer on Tariff 31/41 with median usage by $16, the Regulator said.
The annual bill for residential customers on time-of-use Tariff 93 is estimated to increase by $13.
Tasmanian Economic Regulator Joe Dimasi said without increased network charges, power prices would have fallen.
“The price change was influenced by a couple of factors including the Australian Energy Regulator’s recent approval of higher network costs for TasNetworks and an increase in metering costs due to the accelerated rollout of advanced meters which pushed up prices,” he said in a statement.
“However, these increases were largely offset by lower wholesale electricity costs as a result of a much lower wholesale electricity price for 2024/25 compared to 2023/24.”
Mr Dimasi said a number of rebates available would then offset the impact of the price increase for the majority of customers: including the federal government’s recently announced electricity rebate of $300 for all residential customers and $325 for small business customers, together with the Tasmanian, the federal government’s Energy Bill Relief of $250 for eligible households and the Tasmanian Government’s ongoing Renewable Energy Dividend.
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Treasurer Michael Ferguson welcomed the annoucement.
“As a result of combined state and federal energy bill relief measures, the average Tasmanian concession-holder can expect to see more than $1,000 shaved off their power bill this coming financial year,” he said.
“The Tasmanian Government will continue to do what it can to provide immediate relief to the rising cost of living.”
Aurora Energy CEO CEO Nigel Clark said taking into account the rebates, most customers would be better off.
“Subtracting the rebates, customers will actually pay significantly less for electricity than they did last year, and it’s even lower for those on a concession. This is good news for Tasmanians in regards to the affordability of electricity,” he said.
“Tasmanians have had a challenging few years, so we’re pleased to pass on what are only very small increases to our residential and small business customers.”
TasCOSS CEO Adrienne Picone, said while the regulated price increase of 0.5 per cent was much smaller than the 22.5 per cent rises in the past two years, Tasmanian households were still paying too much for their electricity and have the highest electricity bills in the country.
“Tasmania’s electricity prices are far too expensive for people on low incomes who are already struggling with a cost of living crisis,” she said.
“TasCOSS is concerned those households unable to afford their energy have little option but to pay the extra bill hit by going without other essentials, such as food or medicine, or enter into energy debt. Either option is not good for physical and mental health and wellbeing, and will only compound difficulties for households to engage in education, work or training.”
She called on the Tasmanian Government must urgently act to provide relief now by releasing $35m of Energy Bill Relief Fund payments currently being withheld.
Power discounts
Residential Pensioners and Concession Card Holders - $1,429
Annual Electricity Concession $629 + 2023 Energy Bill Relief Fund (two payments in 2023-24, two in 2024-25) $250 + Tasmanian Govt Supercharged RED $250 + Federal Govt Energy Support $300
Residential Family Tax A, B, Carers, Seniors Card Holders - $800
2023 Energy Bill Relief Fund (two payments received in 2023-24, two coming in 2024-25) $250 + Tasmanian Govt Supercharged RED $250 + Federal Govt Energy Support $300
Other Residential Customers - $550
Tasmanian Govt Supercharged RED $250 + Federal Govt Energy Support $300
Small Businesses (consuming less than 150MWh) - $625
Tasmanian Govt Supercharged RED $300 + Federal Govt Energy Support $325
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