Tasmania tables legislation to cap power prices

The Tasmanian Government has tabled legislation to cap electricity prices in the state.

Minister for Energy Guy Barnett said the government has made a commitment to lower the cost of living burden for Tasmanians by breaking away from mainland electricity prices.

“Introducing legislation delivers on our election commitment to table the Bill within our first 100 days to cap electricity price growth to no more than CPI for a three-year period,” Minister Barnett said.

In 2013, the former Labor-Green Government linked Tasmanian wholesale prices to the Victorian electricity market, which has led to an “alarming” increase in power prices.

“By linking Tasmania’s electricity pricing to the mainland, Tasmanians were suddenly at the mercy of events in mainland states,” Mr Barnett said.

“Our plan will break the former Labor-Green Government’s link with mainland prices and give Tasmania the lowest power prices in the nation by 2022.

Under our Tasmania First energy policy, we have committed to providing Tasmanians reliable and renewable power, at the lowest possible price.

“As a result of capping power price increases to no more than CPI for 2018-19, it is estimated that a typical residential customer will save around $180 during that financial year.”

The state government plans to break from mainland pricing by July 2021, which will result in a 7-10 per cent reduction in prices, giving Tasmania the lowest regulated electricity prices in the nation.