PENSIONERS and health care card-holders using Aurora Energy's Pay As You Go scheme have been promised relief from a recent 12 per cent rise in power tariffs.
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The move by the State Government to step in comes after Aurora defied pressure from customers and the Opposition to provide relief, the company saying the increases were due to circumstances largely outside its control.
Premier David Bartlett announced the concession yesterday at the ALP state conference, saying that it would take a $1.7million chunk out of the state- owned power company's dividend.
"But it's a burden I would much rather see carried on the shoulders of Aurora and the Government than on the shoulders of low-income Tasmanians," he said.
"Sometimes governments need to step in and work with our utilities to make sure profit is not put before people. We'll also be asking the independent regulator to assess recent Pay As You Go price rises and whether Pay As You Go should be regulated just like our other electricity tariffs."
About 20 per cent of Aurora customers use the pre- paid electricity option. They were hit by an average 12 per cent increase on July 1.
Residential customers faced a 7.2 per cent increase.
Aurora Energy chief executive Peter Davis said yesterday that the company would abolish the PAYG daily standing charge for pensioners and reduce the increase in the standard and off-peak winter prices in the 11am to 4pm, 4pm to 8pm and 8pm to 6.30am timeslots.
Dr Davis said the move would save a pensioner $90 in the financial year and that 17,000 PAYG users would be eligible for the scheme, which is set to take effect on August 1.
Opposition energy spokesman Peter Gutwein welcomed relieving pressure on PAYG users, but said it had taken a long time to sort out the problem.
"Up until now, the Government have been resolute that it could do nothing. It seems the height of hypocrisy that the Premier would wait until he addresses the State conference rather than dealing with the matter when it first arose," he said.
"This still does not address the issue for all Pay As You Go customers and there will be many Pay As You Go customers on the margin that may miss out and they will cross subsidise existing Pay As You Go customers who received concession while also helping Aurora profits."
Mr Bartlett yesterday also committed to giving low- income earners sewerage and water relief.
He gave no detail of the planned concession, but reassured constituents that it "will be in place by the time the first bills hit your letterbox".