Tasmanian electricity prices are set to rise by an average of 0.5% from next month, the state’s economic regulator has announced.
The price adjustment, which will come into effect on July 1, will see annual bills for residential customers rise by $13 to $16 and business customers by $3 to $5, depending on tariffs.
“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,” regulator Joe Dimasi said.
“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.”
“Without the increase to network costs, standing offer prices would have fallen by approximately 5% in 2024-25.”
Tasmanian Council of Social Service CEO Adrienne Picone said while the increase is much smaller than the 22.5% rises in the past two years, it “shouldn’t deflect from the fact that Tasmanian households are 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.”
“The Tasmanian Government must urgently act to provide relief now by releasing $35 million of Energy Bill Relief Fund payments currently being withheld and support people on low incomes to avoid future price increases.”
Dimasi said that currently regulated prices in Tasmania “remain amongst the lowest regulated prices in the country” and pointed to available rebates “which will more than offset the impact of the 2024-25 price increase for the majority of customers”.
“Customers having difficulty paying their bills are encouraged to contact their retailer,” he said.
Treasurer Michael Ferguson said the state government will “do what it can to provide immediate relief to the rising cost of living”.
“We know that Tasmanians are struggling … which is why the Tasmanian Government is providing significant concessions to help reduce pressure on households and small businesses, such as our supercharged Renewable Energy Dividend and the existing Energy Bill Relief package,” he said.
“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.”
