Power price rise on the way for Tasmanians on the grid

Tasmanian households with the state-owned electricity retailer will see an increase in their bills of just over $100 a year from July 1.

Economic Regulator Joe Dimasi, who sets the prices for Aurora Energy, has announced he will allow an average price increase of 4.23 per cent.

For a household on the flat residential rate (tariff 31/41), it equates to an increase of $108 per year, taking their yearly bill to $2,430.

The typical customer on the time-of-use rate (tariff 93), which charges more during peak periods in the morning and evening, is estimated to see an increase of $113.

It will take that household's yearly bill to $2,444.

A typical business customer is expected to face an increase of $61 per year.

Mr Dimasi said higher network costs being charged by TasNetworks accounted for almost all of the price increase.

He said the wholesale price of power had increased only marginally and was offset by a reduction in renewable energy costs.

"The regulator has also approved Aurora Energy making changes to the structure of its tariffs," Mr Dimasi said.

"These changes will generally increase the daily supply charge for most tariffs and reduce energy usage charges."

He said this would mean the bill increase for customers would vary between customers.

In 2024-25, Aurora Energy held around 92 per cent of the Tasmanian market.

Those with solar panels will receive a 5.6 per cent bump in their rate, though, with the feed-in tariff increasing to 9.276c/kWh.

This increase follows average rises of 2 per cent last year, and a 0.5 per cent price rise for 2024-25.

However, household and small businesses were slapped with a 9.5 per cent rise in 2023-24, and an 11.9 per cent increase in 2022-23.

Tasmanian prices among the lowest in nation, regulator says

Mr Dimasi claimed the 4.23 per cent increase in Tasmania was "marginally higher" than in Victoria, South-East Queensland, New South Wales and South Australia.

In the upcoming year, nearly all customers in those states will receive a cut to the price they pay for power, except South Australian households, which will see just a 1.4 per cent increase.

He also said that even with the upcoming increases, the average bills in Tasmania would still "remain the lowest or second lowest in the National Electricity Market".

However, a price comparison in his media release indicates that Tasmanian households have the third-lowest bills in the country, paying upwards of $100 more a year than equivalent households in Victoria and South-East Queensland.

A Tasmanian household using a time-of-usage rate will be better off than those on a time-of-usage rate in other states.

All small businesses in Tasmania using 10,000 kilowatt hours are estimated to pay less than those in all other states

Help available for those struggling with bills

Aurora Energy chief executive Nigel Clark acknowledged the increase, calling it "marginal".

"As Tasmanians ourselves, we understand that financial challenges are already being felt by households and businesses and I want to assure the community that we have support options available to help customers doing it tough," Mr Clark said.

He pointed to the Tasmanian government's Energy Hardship Fund, which was doubled in size to $700,000 last week.

'No price rise is popular'

Energy Minister Nick Duigan admitted the increase came as the cost of living was "challenging" the community.

"I think it's really important in the Tasmanian context that we understand that, for example, over the last 10 years, power prices in Tasmania have actually gone down in real terms, compared with inflation," he said.

He pointed to concessions offered, which currently sit at $1.77 per day for pensioners, veterans, and those with a Health Care card or ImmiCard.

TasNetworks Interim chief executive Renee Anderson said keeping prices low was a priority.

"No price rise is popular. But we have worked hard — through the regulator — to have smoothed-out increases and avoided sudden shocks,"

she said.

Labor's energy spokesperson Janie Finlay said the state government was unable to answer basic questions about the impact AI factories would have on power bills.

"These projects could use enormous amounts of power, but the government cannot explain where that power will come from, what it will cost, or whether households and small businesses will be protected," she said.