Electricity price hike in Tasmania to add $60 to average annual bill

As electricity prices are set to soar across multiple states starting July 1, Tasmanian households on standard contracts are in line for a hike of 3.4%. The price change is estimated to add around $60 per year to the average household electricity bill according to the Tasmanian Economic Regulator.

RELATED: South Australians prepare for a bill chill this July

“The price increase is mainly due to increases in costs associated with the purchase of wholesale electricity primarily due to higher Victorian wholesale contract prices and in complying with the Australian Government’s renewable energy program,” said the Regulator.

These increased costs have been partially offset by a decrease in network charges and retail charges, the latter of which are set by the Regulator.

The state government defended the price rise by saying that the hike was much lower compared to other states.

“The 3.43% increase approved by the regulator is less than recent price movements for electricity in other states, such as the ACT, of 6%, and South Australia, of up to approximately 10%,” Energy Minister Matthew Groom told news.com.au.

Energy experts on the other hand, have warned that electricity prices in Tasmania may continue to rise in the next few years.

Savers looking for options to control their electricity bills would be happy to know that apart from the price hikes, the Regulator has also approved Aurora Energy’s proposal to introduce new standing offer time-of-use tariffs. This can help slash electricity bills for households that use heavy power guzzlers like the washing machine and dryer during off-peak hours when electricity prices are at their lowest.  

For energy saving tips around the house, check out Mozo’s energy saving guides.