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Groom Misleads on Electricity Costs

6 Jun 2017

Rosalie Woodruff MP | Greens' Energy spokesperson 

It was confirmed in Budget Estimates today that Hydro’s part of household power bills will go up 30% compared to last year, under a change to the wholesale electricity price the Hodgman Government sets.

Minister Groom has been caught out, once again, misleading Tasmanians by saying the Liberals will be saving households an average $300 next year. 

Under the cover of legislating to keep back a mainland price increase next year, the government has bought in an unjustified overall power bill increase of 2%.

The government will also pocket the $110 annual power bill reduction to the average household that the Australian Energy Regulator ordered TasNetworks pass back to households. This will be used to prop up Hydro Tasmania.

Minister Groom could not indicate any change in the cost of Hydro supplying power to Tasmanian homes to justify this price increase.

Under questioning from the Greens, Mr Groom confirmed in Budget Estimates that “an arbitrary process” is being used to set the wholesale electricity price, based on an overall increase of 2%.  

The Liberal Government is wholly responsible for the increase in power bills this coming year. They could have passed on the $110 saving, and refused to bring in an arbitrary 2% price increase, but did not.