Power prices set to rise in Tasmania following budget

Tasmanian families might be about to get a power price shock. Find out how much the budget says electricity prices will rise.

Labor's Dean Winter.

TASMANIANS could face electricity price rises of more than 50 per cent in the next 18 months, Labor says.

The party’s energy spokesman Dean Winter said forecasting contained in Tuesday night’s federal budget was dire and would see Tasmanians paying a total of 75 per cent more for power than they did in the first half of this year.

Electricity prices rose 12 per cent in Tasmania on June 30 – although the state government was quick to point out that prices had fallen 15.4 per cent in real terms since 2014.

The budget contained a warning that inflation would be fuelled in part by rising energy costs.

“Treasury has assumed retail electricity prices will increase by an average of 20 per cent nationally in late 2022, contributing to higher forecast CPI in 2022-23,” it said.

“Given forward wholesale contract prices for electricity remain elevated, retail electricity prices are expected to rise by a further 30 per cent in 2023-24.”

Federal Opposition Leader Peter Dutton said there was “shock across the Australian community” at the news in the budget about soaring electricity prices.

“They heard the Prime Minister on 97 occasions promise that their power prices would come down by $275,’’ he said.

CANBERRA, AUSTRALIA NewsWire Photos OCTOBER 26, 2022: Opposition Leader Peter Dutton spoke with morning TV programs the day after the 2022 Budget was handed down, at Parliament House in Canberra. Picture: NCA NewsWire / Gary Ramage

“We now find that five months later the government is predicting that their power prices will go up by 56 per cent over the next two years, gas prices up by 40 per cent, every other cost-of-living pressure still will continue to mount, and this government last night threw their hands up and said that they didn’t have a plan.”

Mr Winter said the state government had hosed down talk of further power price rises.

“It appears the outlook is even worse than predicted,’’ he said.

“Jeremy Rockliff and Guy Barnett cannot continue to bury their heads in the sand.

“The government must now commit to capping power prices for next financial year.

“This year’s decision not to cap prices cost an average $227 per household and will cost more next year if nothing is done.

“The Liberals broke their promise to de-link from the National Electricity Market and now every Tasmanian is paying the price.”

Tasmania’s power price is set annually by the Tasmanian Economic Regulator reflecting movements in the National Electricity Market.

Minister Guy Barnett. Parliament question time. Picture: Nikki Davis-Jones

Energy and Renewables Minister Guy Barnett said the government was doing what it could to keep the cost of living down, with action over a long period on power prices and increased support for those doing it tough.

“We’re concerned as a government about cost of living, like other Tasmanians, and we’ve demonstrated that,” he said.

“In Tasmania right now, we have either the lowest or amongst the lowest regulated power prices for residential and business customers, but we also recognise there’s more to do going forward, there are headwinds, not just in Tasmania, on the mainland and overseas, Ukraine, the pandemic.

“There are a whole range of reasons for that.

“But we’re very pleased that in Tasmania, we’re leading the country with either the lowest or amongst the lowest electricity prices in Australia, but we’ll monitor this very carefully.”