AURORA'S developer charges mean first home buyers and builders may be blocked from owning their dream home, Master Builders Tasmania executive director Michael Kerschbaum said yesterday.
The electricity retailer changed its customer contribution policy in July 2012, forcing developers to pay more to develop land.
Master Builders Tasmania and Property Council Australia has said there are reports that the change has led to increases of up to 1000 per cent.
The Property Council's state executive director, Mary Massina, said the charges stymied economic development and job growth.
Mr Kerschbaum said Aurora had pushed all customer capital contribution for infrastructure development onto developers.
``Effectively this cost is saddled on consumers, who are forced to pay the additional charges when they purchase their block to build their dream home,'' he said.
``To ask for capital contributions from a developer and then charge them an ongoing fee for use of that service is nonsensical.''
Aurora spokesman Richard Wilson said all electricity users subsidised a higher proportion of costs associated with new developments before the company switched its policy, which reduced the subsidy.
``We have calculated that under the old system, each customer received $20 per year on their bill for 40 years that was a direct subsidy for developer costs,'' he said.
``The costs are still the same, but who pays them has changed.
``It sends a price signal to developers that there should be more cost reflective pricing for developing land.''
He said Aurora had analysed private work two years before the policy changed and found it was well in decline so the change had not stymied development.
Mr Wilson said private developers recouped costs once other customers connected to infrastructure that they paid for.