Tasmanian households will soon face power bill increases of about $200 on average, after the state’s independent regulator announced that it would also be implementing an energy price hike from July 1.
The Tasmanian Economic Regulator, which is responsible for the regulation of the island state’s water, sewerage and energy supply, revealed the regulated standing offer prices for electricity will increase by 9.51% on average for households and small businesses come July 1.
According to the regulator, this will result in an average annual power bill increase of $201 for residential customers on a single-rate or controlled load tariff, and a $199 yearly increase for residential time of use tariff customers, based on median usage estimates.
Small business customers will be hit with a slightly higher price hike bracket of between $126 and $284, depending on their energy tariff and estimated usage amounts.
Tasmanian Economic Regulator Joe Dimasi said external pricing factors played heavily into the upcoming price increase.
“The price increases have been driven by external factors, particularly wholesale electricity costs which are 24.8 per cent higher than in 2022-23 and account for more than eight percentage points of the 9.51 per cent price increase.”
Despite a rise in electricity prices, the regulator has flagged a surprising 22.4% increase to the state’s minimum solar feed-in tariff for 2023-2024. This means from July 1 solar customers will be eligible for a feed-in tariff of 10.869 cents per kilowatt hour (c/kWh). The current minimum feed-in tariff in the state is 8.883c/kWh.
The announcement follows several other states and territories such as New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory, also confirming varying power price increases for households and businesses from July 1.
In comparison to the expected 20-30% increases for NSW, VIC, SEQ and SA, Mr Dimasi stated that Tasmania’s electricity price hikes remained ‘amongst the lowest in the country’. This was alongside the ACT, which is anticipating only a 5% increase for its households in July.
Aurora Energy CEO Nigel Clark said while the news was more welcoming than that received in other parts of the country, an increase of this size may still impact households already doing it tough in the state.
“We know today’s news is going to make it very tough on some individuals and families who are already struggling to make ends meet,” he said. “As Tasmanians ourselves, we understand the difficulty already being felt by Tassie homes and businesses. We have more support than ever to help Tasmanians doing it tough.”
Aurora Energy is Tasmania’s government-owned electricity and natural gas retailer and provides energy services to more than 270,000 customers in the state.
Mr Clark said his company encourages any customer that is concerned about incoming costs to get in touch immediately.
“We encourage any customer who may be struggling to keep on top of their energy bill and are in need of support to get in contact. The sooner they get in touch, the sooner we can help.”
Aurora Energy offers energy hardship support to customers through its Your Energy Support (YES) program. It also provides free energy usage monitoring and tips through its aurora+ app.
The Tasmanian Economic Regulator has also said that vulnerable customers may be eligible for a $250 electricity rebate annually to help cover the cost of the increases in 2023-2024. This will be funded in conjunction with the federal government’s wider energy rebate scheme.
Small business customers may also be eligible for a $650 electricity rebate from the state government.
Additionally, Tasmania’s electricity concession will be increasing by $55, making it $629 per year for residential customers in 2023-2024. This will bring the total energy relief package to $879 for eligible customers.
Worried about rising energy costs? See if you are eligible for additional support from your retailer with Canstar Blue’s energy hardship guide.
Stay on top of rising electricity prices and compare deals from some of Tasmania’s cheapest electricity providers below
Here are the published electricity deals from the retailers on our database for Tasmania. These cost estimates are based on a household with an annual electricity usage of 2,947kWh/year for a residential customer on a single rate tariff at a selected postcode in Tasmania, but prices will vary depending on your circumstances. Use our comparison tool for a more specific comparison in your area. This table includes featured products from referral partners. Our database may not cover all deals available in your area, and please check retailer websites for up to date information.
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