Tasmania power prices to soar: Here’s what you can do about it
A nearly 12% price jump is just 2 weeks away.
The energy crisis affecting the nation has finally caught up with Tasmania. The Tasmanian Economic Regulator (TER) Joe Dimasi approved supplier Aurora Energy's 11.88% increase in standing offer prices. The changes will come into effect from 1 July 2022.
Dimasi said "Such price increases at this time are difficult but they have been driven by external factors, in particular, wholesale electricity costs are 37% higher than in 2021/22 and account for around 10.4% of the 11.88% price increase."
Because it is part of the National Electricity Market (NEM), wholesale electricity prices set in Tasmania are heavily tied to prices in the NEM.
In May, regulators overseeing other states also made changes that have seen prices rise dramatically including:
- An 8.5% increase in New South Wales
- A 12.6% increase in South-East Queensland
- A 9.5% increase in South Australia
- A 5% increase in Victoria
What does this mean for consumers?
Unfortunately, these price increases are going to affect households and businesses in Tasmania.
The bill for a residential customer with a median usage is set to increase by approximately $227 a year (Tariffs 31 and 41). While residential customers with a median usage on the time of use tariff or Tariff 93 will see an estimated increase of $196 a year.
For business customers with a median usage the increase in the yearly bill is estimated to be approximately $176 on Tariff 22.
Pensioners and those on concessions can expect a slightly smaller blow to their wallet with median consumers expected to pay around $143 extra a year.
What can you do?
Firstly there is some good news. The Tasmanian government has stepped in to provide immediate relief by announcing a brand new Winter Energy Assistance Package.
Premier Jeremy Rockcliff and Minister for Energy and Renewables Guy Barnett revealed details of the package today which is aimed at supporting families and small businesses and includes:
- $180 Winter Bill Buster discount. This will be applied to bills for eligible electricity concession account holders.
- Exemption of the $50 million Energy Saver Loan scheme which provides up to $10,000 interest free-loans to private residential customers, small business customers as well as landlords of residential rentals to invest in energy-efficient products to assist with lowering power bills.
- No charges for aurora+. From 1 July 2022 Tasmanians using aurora+ to monitor their electricity usage won't pay a fee. Additionally, Aurora will work to get as many Tasmanians connected to the service as possible by accelerating the roll-out of advanced meters.
- 1.7 million Aurora Customer Support Fund and YES incentive payment extension. From 1 July Aurora Energy's financial hardship programs will be extended for a further 12 months. This includes up to $200 credit for residential customers who are meeting their payment commitments at the quarterly review.
The Tasmanian government will release further details on the Bill Buster payment and Energy Loan Saver scheme in the following weeks.
Those interested are encouraged to contact the Aurora YES Team on 1300 10 2010 (9am - 4.30pm weekdays) or visit auroraenergy.com.au for more information on Aurora's programs, including signing up to the aurora+ app.
Of course, making some changes around the home can help too. See our tips for saving power here.