Hydro Tasmania has increased the price of electricity for customers on King and Flinders Islands by 6.78 per cent. The price rise includes two components: an increase linked to the Consumer Price Index (CPI) and a component related to the introduction of a price on carbon.
Hydro Tasmania provides electricity services on the Bass Strait Islands under a Community Service Obligation (CSO), funded by the State Treasury. The State Government provides a CSO at a sufficient level to subsidise the energy rate for Bass Strait Island customers; and provide a safeguard for customers from rising diesel fuel costs. The cost of the CSO in 2011/12 was $8.25 million.
The Bass Strait Island energy tariff is now near parity with mainland Tasmanian prices, however daily charges are higher in Tasmania.
The Tasmanian Economic Regulator has acknowledged the increases and the following tariff schedule is published under the provisions of the Electricity Supply Industry Act 1995. The revised tariffs have been applied on a pro-rata basis commencing with the first customer bills issued after
April 15, 2013.