PREMIER David Bartlett yesterday warned householders and small businesses face "significant increases in electricity prices" expected to be approved by the economic regulator soon.
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Mr Bartlett said the government was working to ensure low-income earners would be protected from large price rises but his political opponents have accused Labor of backtracking on an election promise to protect all Tasmanians.
Tasmanian residential energy costs have risen 34.24 per cent since 2006. Electricity last year rose by 7.2 per cent, half that of the national average.
In February during the election campaign, Labor announced it would cap power price hikes for all households at 5 per cent in 2010-11.
Then Human Services Minister Lin Thorp said the government would accept lower dividends from Aurora and Transend to fund the promise.
Yesterday, Mr Bartlett said Labor's commitment was to low-income earners.
"The cabinet is currently considering a range of options to give effect to this commitment and also to ensure the ongoing sustainability of the state's electricity businesses," he said.
"Tasmania's energy market faces some challenges going forward, there is no doubt about that."
Opposition energy spokesman Peter Gutwein described Mr Bartlett's comments as "a supreme display of weasel words".
"The Premier must immediately explain who will be eligible for the price cap and who won't be," he said. "The fear is that Tasmanian taxpayers will be forced to bail out Aurora through higher power prices, because the government's energy policy has been a dismal failure."
Tasmanian Greens energy spokesman Kim Booth called on the Premier to ask Energy Minister Bryan Green to investigate the development of the statewide energy strategy as a matter of urgency.
"It is clear that Labor's failure over the last 12 years to develop a comprehensive statewide energy strategy has come home to roost," he said.